Image credit: Shutterstock
MetaMask has launched Money Account, a self-custodial stablecoin account that lets eligible users earn yield on MetaMask USD and spend the balance through MetaMask Card.
The product expands MetaMask’s wallet role by combining stablecoin yield and card spending in one balance.
Eligible Users Can Earn Up to 4% APY
Money Account is powered by mUSD, MetaMask’s dollar-denominated stablecoin. MetaMask says eligible users can earn up to 4% variable APY once funds are added.
The yield comes from third-party smart contract vaults that deploy assets into DeFi lending markets.
At launch, the vault allocates to Morpho. Aave markets are expected to follow. Vault infrastructure is built and operated by Veda, with risk curation from Steakhouse Financial.
No Lock-Up or Minimum Balance Applies
The account has no staking step, lock-up, account minimum or manual deposit and withdrawal process. Once users opt in, returns accrue inside the Money Account balance.
That makes the product closer to a spendable stablecoin account than a separate DeFi position that users have to manage manually.
MetaMask Card Spends From mUSD Balance
Money Account connects directly to MetaMask Card in markets where the card is available. Users can spend from the same mUSD balance online or through tap-to-pay, with purchases settling automatically from the account.
MetaMask says the card can be used at merchants that accept Mastercard. The card also offers up to 3% back on eligible purchases, paid in mUSD into the Money Account. Those rewards can then return to the same yield-earning balance.
Monad Handles the Account Layer
MetaMask built Money Account on Monad, which serves as the home network for the product. The company said Monad’s low fees and fast finality allow the account to support earning, spending and trading from one balance.
Network fees are sponsored, so users do not pay network fees to earn, spend or manage the account.
Users can convert supported stablecoins, including USDC, USDT and DAI, into mUSD. MetaMask says stablecoin conversions are instant at 1:1 parity with no conversion fees on supported networks.
DeFi Yield is Not Insured Savings
Money Account is not a bank account, savings account or regulated investment product. MetaMask says mUSD balances are not insured by the FDIC or any government agency.
The yield is variable and depends on third-party DeFi protocols, leaving users exposed to smart contract, protocol and liquidity risks.
Adoption will depend on whether users accept DeFi yield risk in exchange for a spendable stablecoin balance that can earn, trade and settle card purchases from the same account.
