Launch

MegaETH is creating a new economic core by launching the USDm stablecoin. The asset leverages yield from institutional-grade reserves to subsidize network operations, aiming to permanently decouple revenue from user fees.

Summary

• MegaETH partnered with Ethena to launch USDm, a stablecoin designed to finance Layer 2 operations.
• USDm uses reserve yields, mainly from BlackRock’s tokenized treasury fund, to subsidize network costs and lower fees.

In an announcement on September 8, MegaETH revealed that it is partnering with Ethena to roll out USDm, a native stablecoin designed to finance sequencer operations without relying on transaction markups.

Instead of passing costs on to users, USDm is designed to channel reserve yields into network expenses, allowing MegaETH to keep fees near cost while maintaining operational sustainability. The team said the reserves are primarily held in BlackRock’s tokenized treasury fund, BUIDL.

A new model for progressive blockchain economics

According to MegaETH, the asset is built to solve a fundamental flaw in layer-2 design: the misalignment between ecosystem growth and fee revenue. Most chains capture value by charging margins on sequencer fees, a model that grows more volatile as throughput scales and data costs compress. By contrast, USDm shifts the burden away from users and relies on reserve yields to finance network operations.

That structure is meant to make fees both stable and negligible, creating conditions for applications that cannot thrive when every action costs multiple cents.

“USDm means lower fees for users and a more expressive design space for applications. We are excited to work with Ethena to enable a win-win scenario for all stakeholders in our ecosystem,” co-founder Shuyao Kong, said.

MegaETH said USDm’s v1 reserves are primarily allocated to BlackRock’s tokenized U.S. Treasury fund through Securitize, providing institutional-grade backing and a predictable yield stream. While the stablecoin launches with a foundation in USDtb, its reserves can evolve to include other Ethena products like USDe as market conditions dictate, according to the announcement.

The choice of Ethena as a partner was strategic. Beyond its reputation for USDe, the third-largest USD-denominated crypto asset, Ethena brings its institutional-grade USDtb rails to the partnership.

Per the statement, USDtb boasts approximately $1.5 billion in circulation and represents a pioneering effort in regulatory compliance, developed in collaboration with Anchorage Digital Bank with the upcoming GENIUS Act in mind. Its reserves are predominantly held in BUIDL, with Ethena and Securitize enabling 24/7 atomic swaps between USDtb and the underlying treasuries, ensuring tight settlement and transparency.

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