MegaETH is taking a bold step toward reshaping blockchain economics with the launch of its new stablecoin, USDm. Built in partnership with Ethena, USDm is designed to finance network operations by using yields from institutional-grade reserves rather than relying on transaction fees from users.
How USDm Works
Announced on September 8, USDm aims to tackle one of the biggest challenges in layer-2 blockchain design: the reliance on sequencer fees for revenue. Traditionally, most chains charge markups on transaction fees, but this model grows unstable as throughput scales and data costs decline.
USDm flips that approach. Instead of passing costs to users, it uses reserve yields primarily sourced from BlackRock’s tokenized U.S. Treasury fund (BUIDL) to cover operational expenses. This allows MegaETH to keep fees close to cost, ensuring they remain both stable and negligible.
“USDm means lower fees for users and a more expressive design space for applications,” said co-founder Shuyao Kong. “We are excited to work with Ethena to enable a win-win scenario for all stakeholders in our ecosystem.”
Institutional-Grade Backing
The first version of USDm (v1) will be primarily backed by allocations to BlackRock’s tokenized treasury fund via Securitize, ensuring predictable yields and robust transparency. While its launch foundation is in USDtb, the reserves can evolve to include other Ethena products like USDe as conditions change.
Ethena’s role is crucial. Known for USDe the third-largest USD-denominated crypto asset Ethena also brings institutional-grade infrastructure through USDtb, a stablecoin developed in collaboration with Anchorage Digital Bank with upcoming GENIUS Act compliance in mind. USDtb currently has around $1.5 billion in circulation, backed largely by BUIDL.
With Ethena and Securitize enabling 24/7 atomic swaps between USDtb and underlying treasuries, USDm gains seamless settlement, regulatory-grade transparency, and institutional credibility from day one.
Why It Matters
By decoupling revenue from user fees, MegaETH is testing a progressive new model for blockchain economics. With fees subsidized by yield instead of passed on to users, applications that struggle under high transaction costs could finally become viable.
If successful, USDm could not only make transactions cheaper but also unlock a new wave of use cases that benefit from predictable costs, institutional stability, and DeFi innovation working hand in hand.
