In the cryptocurrency market, stablecoins are like the backbone of the entire ecosystem, and the first stablecoin I became familiar with is USDT. We have to understand that with stablecoins, our life becomes easy because we can buy crypto at any point in time and also convert when there is an opportunity in the market. There are some platforms where we can also earn some rewards through stablecoins, but that is another part of the story. After USDT, the second stablecoin I got to know is USDC, and both stablecoins are managed by companies, so there is a single entity that manages the stablecoin, and they have full control over it. The basic understanding is that these stablecoins are backed by fiat currency in dollars, so whenever they print some coins, they maintain a backing for the same value of fiat currency in the treasury, but I don't think we have the mechanism to check.
Later, I got to know that there are so many stablecoins available in the market, but these are the two coins that are very much popular in the market, where USDT is on top, followed by USDC. Now, the next update is that MetaMask is going to launch its stablecoin, and it will be based on the Ethereum blockchain network. I use Metamask, and it is a decentralised wallet, which is also known as a non-custodial wallet, where we can store our cryptocurrencies on multiple networks. I thought that it was an application which is available for people to use, and there was no company that was managing it, but now, with this announcement, I have learned something which is new.
MetaMask is set to launch its own stablecoin, mUSD, on Ethereum and Linea, later this year. The stablecoin will be issued by Stripe-owned Bridge and powered by M0.
The Metamask is going to launch its stablecoin, which is called MUSD, and this will be available on Ethereum and the linear network, and most probably, this will be available by the end of this year. We are also going to use the owned Breeze for the issuance of this stablecoin. As of now, they have not shared about the listing of this coin, but it is assumed that it will be available on all leading crypto exchanges and obviously on decentralised exchanges as well, with some different pairs or maybe some popular coin pairs.
This stablecoin is going to be backed by the US dollar. Because this is coming from a wallet that is decently light, we can expect more utility coming towards the DeFi, which is also known as decentralised finance. And let's see what value proposition it brings to the ecosystem and how it is going to evolve the overall decentralised financing model.
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Currently, they have not announced their availability on various networks like BSE or the Solana network, but I hope this will be available on multiple chains, especially the chains that are very much popular in the market, and a lot of people use them. Ethereum is a very popular blockchain network so it is going to be available there But this chain has got higher transaction fee and this is why it is also very important to have this coin available on some chains like BSC Solana and Polygon where the transaction cost is minimal so more people can use the coin on different protocols while not to be worried about the transaction sot which going to be minimal on these chains. Thank you!