MegaUSD (USDM)

Preview

Market data not yet available

Overview

MegaUSD (stylized as USDm) is the native U.S. dollar–denominated stablecoin of the MegaETH ecosystem, a high‑performance, Ethereum‑secured network built for real‑time apps. USDm is issued using Ethena’s “stablecoin‑as‑a‑service” stack and is designed to live across MegaETH wallets, decentralized apps, paymasters, and trading routes. Rather than relying on a traditional markup on network fees, MegaETH plans to fund core operations with the financial yield generated by USDm’s reserves. This approach aims to keep transaction costs low and predictable while the chain scales. (megaeth.com)

At launch, USDm is built on Ethena’s USDtb rails. USDtb holds most of its backing in BlackRock’s tokenized U.S. Treasury fund, known as BUIDL, via Securitize, with a smaller slice held in liquid stablecoins to help with redemptions. Because the reserves throw off a steady, transparent yield, MegaETH can direct that income to pay its sequencer and other operating expenses. The result is a simple promise: sub‑cent fees without squeezing users. (megaeth.com)

USDm is part of a broader stablecoin mix on MegaETH. Other dollars on the network, including USDT0 (the chain’s canonical USDT representation) and cUSD, continue to be supported across routing, liquidity, and money markets. Builders can choose the asset that fits their app while USDm anchors the network’s economics. (megaeth.com)

History & Team

MegaETH is developed by MegaLabs, a company founded in 2023 by a group of engineers and operators with deep Ethereum roots. Key leaders include CEO Yilong Li, CBO Shuyao Kong, CTO Lei Yang, and growth lead Namik Muduroglu. Lei Yang’s own site lists him as co‑founder and CTO, and independent profiles describe Li’s Stanford PhD background and Kong’s years at ConsenSys. Together, the team set out to build a “real‑time” blockchain that can process transactions in milliseconds while settling back to Ethereum. (theblock.co)

Funding has come from both top venture firms and well‑known angel investors. In June 2024, MegaLabs raised a $20 million seed round led by Dragonfly with participation from Figment Capital, Robot Ventures, Big Brain Holdings, and a long list of angels that includes Vitalik Buterin, Joseph Lubin, and EigenLayer’s Sreeram Kannan. A December 2024 community round on Cobie’s Echo platform added another $10 million in under three minutes and brought in thousands of individual backers worldwide. (theblock.co)

Community building has moved in parallel. MegaLabs runs the MegaMafia accelerator, a hands‑on cohort program for teams building on MegaETH. According to ecosystem write‑ups, projects from MegaMafia cohorts have collectively raised more than $40 million from venture firms, showing early traction for apps that could benefit from very low fees and sub‑second finality. (bsc.news)

Technology & How It Works

Issuance on Ethena’s stack

USDm is issued using Ethena’s reserve‑backed stablecoin infrastructure, starting with USDtb. In this setup, reserves are primarily BUIDL fund shares recorded onchain through Securitize, complemented by a smaller buffer held in liquid stablecoins to smooth redemptions. This creates a transparent, institution‑grade base and a predictable yield profile. (megaeth.com)

Ethena and Securitize also enabled 24/7 atomic swaps between USDtb and BUIDL for qualified participants. This tightens settlement, improves liquidity, and helps the system line up reserve movements with user‑level flows. The feature is noteworthy because it keeps the backing observable onchain and reduces reliance on traditional banking hours. (theblock.co)

Where the yield goes

Most Layer‑2 networks earn revenue by adding a margin to sequencer fees. MegaETH flips the model: the yield from USDm’s reserves is programmatically directed to cover operating expenses, including sequencer costs. That allows gas to be priced at cost instead of padded with a markup. As more activity arrives, the network doesn’t need to raise fees to protect margins; it routes value from financial yield back to keep costs steady. (megaeth.com)

Reserve flexibility

USDm’s design is modular. While v1 uses USDtb as the base, MegaETH notes the backing can shift over time—potentially incorporating other Ethena products like USDe—if market conditions or regulatory needs change. This gives the stablecoin a path to adapt without breaking its role in the network. (megaeth.com)

Fit with a real‑time blockchain

USDm is only one piece of MegaETH’s performance story. The chain targets 10 ms block times and high throughput while preserving Ethereum composability. Those characteristics matter for money moves: when fees are consistently sub‑cent and confirmations near‑instant, use cases like real‑time markets, streaming payments, and interactive apps become practical. Recent platform updates, such as Chainlink Data Streams integrated as a native precompile on MegaETH, further point to low‑latency finance as a central design goal. (megaeth.com)

Tokenomics & Utility

Economic model

USDm is a fiat‑pegged asset aimed at holding roughly one dollar in value. It is not marketed as a yield‑paying instrument to end users. Instead, the yield from its reserves is diverted to cover network operating costs. In plain language: holders use USDm like digital cash inside MegaETH, while the background yield helps the chain keep fees low. (megaeth.com)

Supply and backing

New USDm is issued on Ethena’s rails. The reserve mix for v1 targets a high allocation to BUIDL through Securitize, with liquid stablecoins used to help handle redemptions and operating liquidity. Because reserve composition can evolve, the stablecoin can be re‑balanced as products and rules change, without changing its purpose on MegaETH. (megaeth.com)

Redemption path

At launch, USDm is not set up for direct fiat redemption. Instead, it can be exchanged into USDtb, which itself connects to BUIDL and liquid stables. Over time, MegaETH has said that float parameters and operational settings may expand as adoption grows. (cointrust.com)

Utility across the stack

USDm is intended to be deeply integrated into day‑to‑day network use. It functions as a common settlement asset in DEX routes, money markets, and app‑level transfers. MegaETH highlights support across paymasters and wallets, so apps can sponsor or accept fees in stable value where supported, even as the protocol sets gas at cost. (megaeth.com)

Ecosystem & Use Cases

Everyday transfers and app payments

Low, predictable fees make small transfers more practical. USDm can be the medium of exchange for P2P sends, in‑app purchases, and creator payouts that would be too expensive elsewhere when fees spike. Because the chain targets near‑instant confirmation, end users can see results immediately. (megaeth.com)

Trading and DeFi

As a native dollar, USDm is expected to appear in liquidity routes, lending markets, and as margin collateral in real‑time protocols on MegaETH. Coverage by oracles and DEX routing is part of the plan, alongside support for other stablecoins like USDT0 and cUSD. With Chainlink Data Streams available natively, builders can design markets that react in milliseconds while staying onchain. (megaeth.com)

Developer‑first integrations

According to Ethena’s stablecoin‑as‑a‑service announcement, over ten MegaETH apps committed early to integrate the new stablecoin. This lines up with MegaETH’s broader push to help projects ship “real‑time” experiences through programs like MegaMafia and hands‑on technical guidance. (outposts.io)

Advantages & Challenges

Advantages

• Aligned incentives: Instead of charging a margin on users, MegaETH funds operations with reserve yield, keeping fees low and more stable for both users and builders. (megaeth.com)
• Transparent reserves: Using USDtb on Ethena’s rails brings institutional‑grade backing centered on BlackRock’s BUIDL via Securitize, plus onchain visibility and 24/7 atomic swaps for qualified participants. (megaeth.com)
• Flexible design: The collateral mix can adapt over time, allowing USDm to incorporate other Ethena products as conditions evolve. (megaeth.com)
• Deep integration: Support across wallets, paymasters, DEX routes, and money markets makes USDm a convenient default dollar for MegaETH apps. (megaeth.com)

Challenges

• Indirect redemption: At launch, USDm does not redeem directly for fiat; it routes through USDtb, and operational parameters will grow with adoption. Some institutions may prefer direct off‑ramps. (cointrust.com)
• External dependencies: The model depends on Ethena’s infrastructure, Securitize’s tokenization rails, and the continued functioning of BUIDL. While these are institutional systems, they sit outside MegaETH’s direct control. (theblock.co)
• Naming clarity: The stablecoin appears as “MegaUSD (USDm),” and some outlets write “USDM.” The stylization may vary across interfaces, so users should check contract identifiers in app UIs. (cointrust.com)

Where to Buy & Wallets

USDm is available on MegaETH‑native DEX routes and in‑wallet swaps across the MegaETH ecosystem. Apps and aggregators on MegaETH list USDm alongside other stablecoins such as USDT0 and cUSD, with routing and liquidity intended to provide best execution. (megaeth.com)

USDm can be exchanged with Ethena’s USDtb through onchain swap rails. For qualified participants onboarded via Securitize, USDtb and BUIDL also support 24/7 atomic swaps that help keep reserves synchronized with onchain activity. Direct fiat redemption for USDm is not offered at launch. (cointrust.com)

MetaMask supports MegaETH in its developer tooling, and MegaETH has promoted first‑class wallet support in its test environment. EVM‑compatible wallets that let users add custom networks can connect to MegaETH and access apps integrating USDm. (docs.metamask.io)

Regulatory & Compliance

USDm’s issuance path relies on Ethena’s USDtb, a reserve‑backed stablecoin that anchors most of its collateral in tokenized U.S. Treasuries (BUIDL). Ethena has stated that USDtb has a clear line of sight to compliance with the U.S. GENIUS Act through work with Anchorage Digital Bank. In practical terms, that means moving issuance under a regulated framework focused on fully collateralized dollar tokens, transparency, and oversight. While USDm itself is issued for use on MegaETH, its compliance posture benefits from this underlying infrastructure. (megaeth.com)

In other regions, stablecoin rules differ. The European Union’s MiCA framework, for example, treats fiat‑referenced tokens as e‑money–like instruments that require authorization and disclosures. Issuers and partners typically align distribution and redemption flows to match local rules, and chain‑level integrations (like oracles and paymasters) are designed to remain neutral to how users access the token. Because USDm runs on Ethena’s rails and holds institutional collateral, it can be adapted to these regional requirements as the ecosystem expands. (megaeth.com)

On questions of Islamic finance, there is no official shariah certification for MegaUSD. Given that the reserve yield comes mainly from U.S. Treasury instruments, which are interest‑bearing, many scholars would not consider USDm shariah compliant. Views can vary across schools of thought, but the protocol’s reliance on conventional interest to fund network operations does not align with most interpretations of Islamic finance principles. (megaeth.com)

Future Outlook

USDm marks a shift in how blockchains can pay for themselves. If a network can tie its costs to a dependable, transparent yield source instead of user markups, it creates room for whole categories of applications that fail when every click costs several cents. That includes real‑time markets, gaming, streaming payments, social apps with many tiny actions, and machine‑to‑machine transfers. With Chainlink’s data streams embedded natively on MegaETH, the stack for low‑latency DeFi is filling in: fast blocks, native oracles, and a stable dollar that helps keep fees steady. (megaeth.com)

Reserve flexibility is another important lever. Starting on USDtb gives USDm institutional‑grade footing, and future collateral options—such as incorporating other Ethena products—could widen the design space. As standards mature under laws like the GENIUS Act in the U.S. and similar regimes elsewhere, USDm’s architecture allows the project to adjust reserve composition, issuance partners, and distribution without changing its role in apps. (megaeth.com)

Ecosystem momentum also matters. MegaETH’s builder programs and early app commitments suggest a growing base of teams who want to take advantage of sub‑cent, instantly confirmed transactions. If those teams can match the network’s technical promises with compelling user experiences, USDm could become the default settlement asset for a new class of real‑time applications. (bsc.news)

Summary

MegaUSD (USDm) is the native dollar of MegaETH, built with Ethena to do more than hold a peg. Its reserves—anchored by tokenized U.S. Treasuries through Securitize—generate a transparent yield that MegaETH uses to cover operating costs. That choice aligns the network with its users: as activity grows, the chain doesn’t need to raise fees to protect margins. Instead, it aims to keep fees low and steady so apps can scale. With deep integration across wallets and DEX routes, coexistence alongside other stablecoins, and a design that can adapt its collateral over time, USDm provides a practical settlement asset tailored for a real‑time blockchain. As regulatory frameworks solidify and more apps ship on MegaETH, USDm is positioned to play a central role in making high‑speed, low‑cost onchain experiences feel as simple as using the web today. (megaeth.com)