XRP stablecoin technology continues to evolve with a new collaboration between M0 Protocol and Bridge, a Stripe-acquired stablecoin issuer, to support the rollout of app-specific digital currencies, starting with MetaMask’s new token, mUSD.

How the Stablecoin Partnership Works

The joint effort leverages M0 Protocol’s blockchain infrastructure and Bridge’s regulatory expertise to streamline stablecoin launches. Bridge, which was recently acquired by Stripe, brings reserve management capabilities and U.S. licensing to the table. Meanwhile, M0 provides a reliable technical foundation tailored to application-specific stablecoins.

This partnership allows crypto products like MetaMask to issue branded digital dollars without managing the complications of legal compliance, infrastructure development, and reserve security. The first project born from this alliance is the mUSD token, which natively integrates into the MetaMask wallet.

MetaMask introduces its own stablecoin, mUSD, through a partnership with M0 and Bridge.

Why Application-Specific Stablecoins Are On the Rise

Stablecoins, which are digital currencies pegged to fiat like the U.S. dollar, currently represent a $250 billion market. They’re becoming a critical part of cross-border transactions due to their efficiency and low costs. Growing institutional interest and new clarity from U.S. legislation, such as the GENIUS Act signed by President Trump, are accelerating stablecoin adoption across sectors.

The ability for applications like wallets, fintech services, or DeFi platforms to release their own dollar tokens is a growing trend. Instead of building the entire stack from scratch, these apps now rely on infrastructure providers like M0 and regulated partners like Bridge. This model mirrors examples seen across the space: Paxos handles PayPal’s PYUSD, and BitGo supports USD1, operated by Trump-affiliated DeFi platform World Liberty Financial.

Earlier this month, U.S. fintech company Slash also deployed a stablecoin partnered with Bridge for global commercial use.

MetaMask’s Entry into Digital Dollar Ecosystem

MetaMask’s move to release mUSD had already gained attention after an internal governance post was accidentally made public. Now, with the official launch of mUSD, the crypto wallet taps into the benefits of its built-in token without shouldering the heavy lifting of compliance and infrastructure.

According to Zach Abrams, CEO of Bridge, the platform now enables stablecoin issuance in just a few weeks instead of an entire year. This development significantly reduces deployment timelines for projects like MetaMask.

“Apps like MetaMask can realize benefits more rapidly and efficiently than ever before,” Abrams stated, underscoring how this innovation accelerates go-to-market for digital dollar solutions.

Scaling for Wider Adoption

M0 and Bridge aren’t stopping with MetaMask. The companies aim to offer similar solutions to other issuers looking to control their own stablecoin ecosystems.

“Applications want to control their dollar infrastructure,” said Luca Prosperi, CEO of M0. “The important thing is they no longer need to build everything themselves.”

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This growing shift toward custom stablecoins is poised to reshape how digital currencies are issued and managed—potentially making them as ubiquitous as payment apps are today.