Ethereum Layer-2 scaling network MegaETH has unveiled its native stablecoin, USDm, developed in collaboration with decentralized finance protocol Ethena. The stablecoin is designed to fund the chain’s operations by redirecting reserve yields instead of relying on sequencer margins charged to users. This approach is intended to maintain consistently low fees across applications within the MegaETH ecosystem.
MegaETH positioned the launch as central to its vision of building a high-performance blockchain capable of processing 20,000 transactions per second with 10 millisecond block times. USDm will serve as the financial core of the network, integrated into on-chain wallets, decentralized applications, and services. Sequencer costs will be covered by the yield from USDm reserves rather than through traditional fee-based revenue collection.
Redefining blockchain fee structures
The new structure seeks to address the long-standing tension between network usability and fee generation. Instead of raising fees as activity increases, MegaETH will redirect revenue from the assets backing USDm. This allows gas fees to be charged at cost, offering stable and affordable transaction pricing even as throughput grows. The model supports the development of advanced applications that require predictable sub-cent transaction costs while insulating the ecosystem from fee volatility caused by Ethereum’s evolving data cost mechanisms such as EIP-4844.
USDm will initially be issued using Ethena’s USDtb infrastructure, a reserve-backed stablecoin underpinned by tokenized U.S. Treasuries. The reserves are linked to BlackRock’s BUIDL fund through tokenization platform Securitize, which provides full transparency and institutional-grade reliability. Liquidity is ensured through redemptions supported by liquid stablecoins and atomic swaps with BUIDL, enabling continuous 24/7 availability.
Flexible reserve model with future options
According to network planners, USDm has been structured to adapt to evolving market conditions. While it will start with USDtb as collateral, future options include other Ethena products such as USDe. This flexible architecture aims to ensure security and compliance while maintaining a reliable yield to cover the operating expenses of the chain.
Introducing MegaUSD (USDm), the native stablecoin of MegaETH.
Built in collaboration with @ethena_labs.$USDM aligns incentives across stakeholders, letting users and apps enjoy the lowest fees possible while routing scalable value back to MegaETH. pic.twitter.com/xxwRy8Skk6
— MegaETH (@megaeth_labs) September 8, 2025
At launch, USDm will be exchanged into USDtb rather than directly redeemable for fiat currencies. Operating float parameters are expected to expand gradually as adoption grows. USDm will also coexist with other MegaETH stablecoins, including USDT0 and cUSD, both of which are expected to retain liquidity and routing support.
Strengthening ties with Ethena
Ethena, one of the leading decentralized finance protocols with $13 billion in total value locked, brings significant credibility to the collaboration. The protocol has gained recognition for USDe, currently the third-largest stablecoin in the market, noted for its rapid growth and derivative-backed yield system. Its track record in scaling stablecoin infrastructure at speed has made it a preferred partner for blockchain ecosystems.
USDtb, which underpins USDm, has already reached $1.5 billion in circulation. It adheres to compliance requirements under the U.S. GENIUS Act and benefits from Ethena’s partnership with Anchorage Digital Bank, further enhancing its regulatory standing. This infrastructure enables MegaETH to deliver a compliant and transparent financial base for its high-performance blockchain.
Broader stablecoin strategy in blockchain ecosystems
The launch of USDm reflects a growing industry trend in which blockchain networks seek to introduce proprietary stablecoins to reinforce their financial infrastructure. By leveraging Ethena’s technology and regulatory framework, MegaETH has ensured that its stablecoin is scalable, compliant, and equipped to support the network’s ambitions. Analysts view this as a step that aligns MegaETH with other networks exploring native stablecoin strategies while providing it with the financial foundation to advance its real-time blockchain vision.
