MegaETH Unleashes USDm Stablecoin with Ethena—Slashing Layer 2 Fees to the Bone

MegaETH just dropped a bombshell—partnering with Ethena to launch USDm, a game-changing stablecoin designed to decimate layer 2 transaction costs.

Why This Matters

High fees have long been the Achilles' heel of Ethereum scaling. MegaETH's move directly tackles this pain point—offering users a streamlined, cost-efficient alternative without compromising on security or speed.

The USDm Effect

By leveraging Ethena's infrastructure, MegaETH isn't just tweaking the system—it's rewriting the rulebook. Expect faster settlements, lower gas spend, and a stablecoin that actually lives up to its name.

Finance's Ironic Twist

Because nothing says 'stable' like a volatile asset-backed coin in a market that still can't decide if it's a revolution or a pyramid scheme. But hey—at least the fees are cheaper.

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.