Daniel Walker
MetaMask’s newly launched mUSD stablecoin has quickly gained traction, reaching a circulating supply of $65 million just one week after going live. When it first debuted last Monday, the token had only about $15 million in supply — marking a sharp rise in adoption in just a few days, according to the project’s website.
Analytics from Dune, compiled by Seoul Data Labs, show that the majority of mUSD’s circulating supply is deployed on Linea (88.2%), with the remaining 11.8% on Ethereum as of Saturday. This highlights Linea’s growing role as a hub for stablecoin activity.
How mUSD Is Issued and Backed
MetaMask announced last month that mUSD is issued through Bridge, Stripe’s stablecoin platform, and minted via M0’s decentralized infrastructure. The company emphasized that the asset is fully backed 1:1 by highly liquid, dollar-equivalent assets, ensuring stability and trust for users.
Stablecoin Market Continues to Expand
As of Sunday, the total market supply of USD-pegged stablecoins reached $279.8 billion, with Tether (USDT) dominating at $172.3 billion in circulation, according to PRIME’s data dashboard.
Regulatory Shifts Driving Stablecoin Adoption
The rapid rise of stablecoins comes as the U.S. GENIUS Act, passed in July, begins to shape the market. Last week, the U.S. Treasury Department invited public feedback on how it plans to implement the new law. Meanwhile, Layer 1 blockchain Kaia and LINE NEXT revealed plans to launch a stablecoin superapp, expected to roll out on LINE’s Dapp Portal later this year.
