Built with Ethena Labs, USDm is designed to power real-time applications on MegaETH while offering low fees.
MegaETH Labs, the team behind the MegaETH blockchain, has introduced MegaUSD (USDm), a native stablecoin built in partnership with Ethena Labs on the Ethena Stablecoin-as-a-Service stack.
USDm is designed to keep transaction fees low while powering real-time applications across the MegaETH ecosystem. “$USDM aligns incentives across stakeholders, letting users and apps enjoy the lowest fees possible while routing scalable value back to MegaETH,” MegaETH said in a post on X, formerly Twitter, on Sept. 8.
The stablecoin’s reserves will be primarily held in BlackRock’s tokenized U.S. Treasury fund (BUIDL) via Securitize – BUIDL currently boasts a total asset value of over $2.2 billion, per RWAxyz. This move is meant to provide institutional-grade backing and predictable yield, according to a MegaETH blog post.
“USDm means lower fees for users and a more expressive design space for applications,” said Shuyao Kong, co-founder of MegaETH, per the blog post. “We are excited to work with Ethena to enable a win-win scenario for all stakeholders in our ecosystem.”
MegaETH’s news comes as the stablecoin market continues to expand, with its total market capitalization surpassing $285 billion over the past week, up more than 5%, according to DeFiLlama. Tether’s USDT remains the dominant player, commanding roughly 58% of the market.
USDm v1 is issued on Ethena’s stablecoin platform and backed by USDtb, which also holds most of its reserves in BUIDL and keeps them fully on-chain. Over $1.5 billion of USDtb, issued by Ethena, is already in circulation, according to DeFiLlama.
Stablecoin Boom
The stablecoin sector’s rapid growth, which has been ongoing for the past two years, gained even more momentum in mid-July, when Congress passed the stablecoin-focused GENIUS Act.
Most recently, decentralized perpetuals exchange Hyperliquid announced plans to launch its own native stablecoin, USDH, as part of its next major network upgrade, according to the project’s Telegram update on Sept. 5.
Fireblocks, a New York-based blockchain infrastructure firm, also recently launched a new platform designed to help institutions scale stablecoin payment flows globally.
