MegaETH, an EVM-compatible blockchain, announced on September 8, 2025, a strategic partnership with Ethena to launch USDm, a native stablecoin designed to finance Layer 2 sequencer operations without relying on transaction markups. The stablecoin leverages yield from institutional-grade reserves, primarily held in BlackRock's tokenized treasury fund (BUIDL), to subsidize network costs and permanently decouple revenue from user fees.
USDm is built to address a fundamental flaw in layer-2 design: the misalignment between ecosystem growth and fee revenue. Unlike most chains that capture value by charging margins on sequencer fees—a model that becomes volatile as throughput scales—USDm channels reserve yields into network expenses. This structure aims to keep fees near cost while maintaining operational sustainability, creating conditions for applications that require negligible transaction costs.
Co-founder Shuyao Kong stated, "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."
The v1 reserves are predominantly allocated to BlackRock's BUIDL through Securitize, providing institutional-grade backing and a predictable yield stream. Ethena brings its USDtb rails to the partnership, which boasts approximately $1.5 billion in circulation and features 24/7 atomic swaps with underlying treasuries for tight settlement and transparency. While USDm launches with USDtb backing, reserves can evolve to include other Ethena products like USDe as market conditions dictate.