TLDR
- MegaETH debuts USDm to cut fees using yield, not margins, via Ethena’s USDtb.
- USDm powers 10ms MegaETH with real-time, low-cost transactions and yield fees.
- No more sequencer fees—MegaETH launches yield-backed stablecoin USDm.
- MegaETH partners with Ethena to launch USDm, slashing costs for users.
- Stable gas meets speed: MegaETH’s USDm runs on Ethena’s USDtb rails.
Ethereum Layer 2 scaling network MegaETH has launched its native stablecoin, USDm, in partnership with DeFi protocol Ethena. USDm will fund the chain’s operations by redirecting reserve yield instead of collecting sequencer margins from users. This model aims to deliver low, stable fees for applications and users across the MegaETH ecosystem.
USDm Designed to Power Real-Time Transactions on MegaETH
MegaETH launched USDm to support its real-time blockchain vision, which includes 10ms block times and 20,000 transactions per second. The stablecoin will be deeply integrated across onchain wallets, dApps, and services, forming the network’s financial core. USDm will cover sequencer operations using reserve yield rather than extracting margin from users.
This shift eliminates the traditional tension between fee revenue and usability. Instead of charging more as activity grows, the protocol redirects income from USDm’s backing assets. That allows gas to be priced at cost, maintaining consistent transaction affordability as throughput increases.
MegaETH aims to enable an entirely new class of applications that need sub-cent and stable gas pricing. By removing volatility from the fee structure, USDm supports scalable, expressive application design. This approach also avoids margin erosion tied to Ethereum data cost compression from EIP-4844.
USDm Launches on Ethena’s USDtb Stablecoin Rails
USDm will initially be issued on Ethena’s USDtb infrastructure, backed by reserves held in tokenized U.S. Treasuries. USDtb is supported by BlackRock’s BUIDL fund through Securitize, offering full transparency and institutional-grade backing. Redemptions are supported via liquid stablecoins and atomic swaps with BUIDL for 24/7 liquidity.
MegaETH designed USDm to remain flexible, with future collateral options including Ethena’s other products like USDe. This architecture allows USDm to evolve with market conditions while maintaining a secure, compliant reserve base. The reserve model underpins predictable yield, which is used to cover chain operating expenses.
At launch, USDm will swap into USDtb rather than support direct fiat redemptions. Parameters around operating float are expected to scale over time. USDm will coexist with current MegaETH stablecoins like USDT0 and cUSD, which will retain deep liquidity and routing support.
Ethena Brings Scale and Compliance Infrastructure to MegaETH
Ethena currently ranks among the top ten DeFi protocols, with $13 billion in total value locked across products. It issues USDe, the third-largest stablecoin in the crypto space, known for its rapid growth and derivative-backed yield generation. The protocol’s success demonstrates its ability to scale and deliver stablecoin infrastructure at speed.
USDtb, Ethena’s reserve-backed stablecoin, has $1.5 billion in circulation and aligns with compliance standards set by the U.S. GENIUS Act. The partnership enables MegaETH to tap into proven institutional infrastructure with compliance-ready components. Ethena’s collaboration with Anchorage Digital Bank further strengthens USDtb’s regulatory outlook.
MegaETH’s move to launch USDm reflects a broader trend where networks seek to issue proprietary stablecoins. By leveraging Ethena’s technology stack, MegaETH ensures USDm has the credibility, compliance, and scalability required to support its high-performance chain. The launch places MegaETH in line with other networks exploring native stablecoin strategies.
