MetaMask’s stablecoin strategy will also serve as a source of income, according to an executive.

Metamask’s Future with MUSD

Metamask plans to leverage the returns generated by MUSD.

Supported by M0 Bridge and Stripe Company.

Metamask is a bit tight-lipped about its upcoming stablecoin initiatives, particularly how MUSD will serve as a revenue source for them.

According to Ajay Mittal, vice president of product strategy at Metamask, “Metamask will gain from the yields related to MUSD.” He explained that part of this revenue is funneled back to enhancing their wallets, which drives improvements and new features for users.

Mittal also mentioned that MUSD is backed by cash reserves and the US Treasury, similar to prominent stablecoins like Tether and Circle.

Tether, the biggest player in this space, reported nearly $5 billion in net income for the previous quarter, primarily from its Treasury assets.

Crypto wallet providers have indicated that stablecoins are expected to make their market debut “later this year.” However, Mittal declined to specify an exact launch date.

The newly issued dollar-pegged stablecoin for M0 and Stripe reflects a bullish outlook in the crypto landscape, according to Luca Prosperi, co-founder and CEO of M0. They’re also collaborating with other brands on developing additional stablecoin offerings.

Integration Plans

Metamask’s intentions were first disclosed on August 6 following a confusing governance proposal regarding MUSD’s integration into the Aave lending protocol.

Mittal was hesitant to reveal which lending provider Metamask plans to partner with.

The introduction of this stablecoin aims to provide wallet providers with various options to enhance user experience during trades. This aspect has raised concerns among Metamask’s critics.

Mittal added, “This could mean potentially lower costs, greater complexity in the underlying systems, and a streamlined way to ramp up, swap, bridge, and spend.”

Currently, the stablecoin market has surged to over $278 billion this year, according to Defilama. Industry experts speculate this number will keep climbing, especially post the anticipated US stabilization legislation.

Matt Hougan, chief investment officer at Bitwise, expressed optimism: “I think this could soon evolve into a $2.5 trillion market.”

Citi analysts have projected that the stablecoin market may reach $3.7 trillion in the next five years.