MetaMask has been revealed to plan a partnership with Stripe to launch the stablecoin mmUSD, building a foundational payment system for Web3 wallets.

According to the governance proposal, the well-known Web3 wallet MetaMask plans to cooperate with payment giant Stripe to launch a stablecoin called "MetaMask USD" (mmUSD). This stablecoin aims to reduce transaction fluctuation and enhance the trading experience of alts, while leveraging Stripe's existing financial infrastructure to bridge TradFi and decentralized platforms. mmUSD will be issued by Stripe but will rely on the "M^0" network for on-chain issuance and Settlement, positioning it as a cornerstone asset of the MetaMask ecosystem. This move is seen as a new trend in crypto rise, expected to reshape DeFi user behavior and market dynamics. Currently, neither MetaMask nor Stripe has officially confirmed this, and specific details are still limited. Previously, MetaMask partnered with Baanx and Mastercard to launch a non-custodial payment card, continuing to layout the Web3 payment landscape.

MetaMask stablecoin plan exposed: mmUSD's positioning and architecture

• Governance Proposal Disclosure Plan: According to the leaked governance proposal, MetaMask is planning to launch a stablecoin, codenamed "MetaMask USD" (mmUSD).
• Cooperation Model: mmUSD will be issued by the global payment processing giant Stripe, but its issuance and settlement will utilize a network called "M^0" to achieve on-chain operations ("unchained issuance and settlement").
• Cornerstone Role in Ecosystem: This stablecoin plan serves as a cornerstone asset for the MetaMask ecosystem, providing a highly liquid base currency that is natively integrated into various services of MetaMask.
• Target Value: The core objective is to drop the price fluctuation risk faced by users (especially when trading alts), enhance the trading experience and practicality within the Wallet, and connect traditional finance (TradFi) with decentralized platforms (DeFi) using Stripe's mature financial infrastructure.

Potential Impact and Market Background

• Reshaping the DeFi Landscape: This proposal is categorized as part of a broader trend in crypto growth, and its success could not only reshape DeFi user behavior and market dynamics but also drive organic distribution and deepen the overall liquidity depth of stablecoins.
• Key Success Factors: The success of mmUSD ultimately depends on user adoption rates and its ability to maintain stable value.
• Stablecoin Market Explosion: Stablecoins have become the fastest-growing "killer application" in the field of encryption, with the current circulation exceeding USD 250 billion, far higher than the scale of only several billion in 2020. Currently, there are about 20 million addresses interacting with stablecoins on-chain.
• Extension of Dollar Hegemony: Federal Reserve Governor Christopher Waller recently acknowledged the importance of stablecoins, pointing out that about 99% of the market value of stablecoins is pegged to the USD. Cryptocurrencies are actually expanding the use of the dollar globally rather than undermining its position. Former U.S. Comptroller of the Currency Brian Brooks also believes that "stablecoins can help maintain the dollar's status as the world's reserve currency," as they enhance the accessibility of the dollar globally.

Non-custodial payment cards lead the way, stablecoins may become the key to the ecological closed loop

• Payment card has been launched: Before the exposure of this stablecoin proposal, MetaMask's parent company ConsenSys announced a partnership with Baanx and Mastercard to launch the MetaMask payment card.
• Core features of the card: According to the official announcement, the card allows cardholders to "pay directly with cryptocurrency, without any additional steps, without banks, with no hidden fees or preloading requirements."
• Significance of Breakthrough Innovation: This card is a key innovation connecting existing stablecoins with everyday payment systems, without sacrificing the core principle that distinguishes cryptocurrencies from Traditional Finance - user self-custody.
• Bridging Encryption and TradFi: Baanx Chief Business Officer Simon Jones emphasized the gap between encryption and TradFi in an interview, and how non-custodial neobanking could ultimately bridge this gap. He stated, "We have built an alliance around ourselves, including partnerships with Mastercard, Visa, and our issuance platform. We start with blockchain and go directly to consumers through partners, covering all intermediaries in between." In short, companies like Baanx are building systems that allow users to spend cryptocurrencies directly from their self-custodied wallets without completely relinquishing control to banks or exchanges.
• Ecological Collaborative Imagination: If the mmUSD stablecoin is successfully launched, it will create a strong synergy with the MetaMask payment card, providing users with a complete non-custodial financial closed-loop experience from on-chain transactions to offline payments.

Current Status and Outlook

• Official confirmation not yet received: As of now, both MetaMask and Stripe have not provided official confirmation regarding the mmUSD stablecoin plan.
• Details are still unclear: There is still limited information regarding the specific structure, issuance timeline, and regulatory compliance considerations of this stablecoin.
• High credibility: Given the enormous market potential of stablecoins, MetaMask's leading position in the Web3 wallet space, and its recent active layout in the payment sector, the fact that this plan is "indeed in progress" is not surprising.

Conclusion: MetaMask's ambition to build a Web3 payment ecosystem is emerging MetaMask and Stripe have proposed the launch of the native stablecoin mmUSD, marking a transition for this mainstream Web3 wallet service provider from a mere entry tool to a comprehensive financial ecosystem platform. If the plan is realized, mmUSD will become the core supporting asset for the MetaMask payment card, achieving a seamless connection between on-chain transactions and offline consumption, reinforcing its core philosophy of Self-Custody. This will not only greatly enhance user stickiness and transaction experience but also serves as a key step in challenging the dominance of centralized exchanges (CEX) in the stablecoin sector and reshaping the Web3 payment infrastructure. However, the project's success still faces multiple challenges, including stablecoin design, user adoption, regulatory compliance, and competition with existing DeFi stablecoins (such as USDT and USDC). Whether MetaMask can complete the ecological closed loop with mmUSD is worth the market's continued attention.