MetaMask, the widely-used cryptocurrency wallet developed by Consensys, has confirmed its plan to introduce its own stablecoin, known as mUSD, later this year. This new digital dollar, joining the expanding stablecoin market, signifies an important evolution in bringing on-chain solutions to users.

“MetaMask USD is a critical step in bringing the world on-chain,” said Gal Eldar, the product lead at MetaMask, in a recent blog post.

Stablecoins are a form of cryptocurrency pegged to stable assets like the U.S. dollar, and they have grown into a market valued at approximately $250 billion. Their popularity has surged following the recent U.S. regulatory developments regarding stablecoin issuers.

MetaMask’s initiative includes collaboration with the stablecoin platform M0 and the U.S.-licensed issuer Bridge, which is now part of Stripe. This partnership aims to assist businesses in launching custom digital coins, with MetaMask as the first to release its token. The mUSD stablecoin is poised to be launched on the Ethereum blockchain and integrated deeply within the MetaMask services.

In a significant move, users will be able to transact using fiat, swap tokens, and utilize this stablecoin through the MetaMask Card at merchants worldwide. The collaboration not only enhances MetaMask’s offerings but reduces the complexity of stablecoin issuance for emerging applications and platforms seeking to create their own branded tokens.

This strategic alliance aims to simplify the layout of stablecoin infrastructures and make it accessible for users and businesses, indicating a growing trend towards decentralized finance solutions.