MUSD, issued by the Mezo Protocol smart contracts which autonomously manage minting, redemption, and peg maintenance, is a Bitcoin-collateralized stablecoin that holds a 1:1 peg to the U.S. dollar (USD) through an overcollateralized debt-position model [S1][S2].

Holders receive a token redeemable for $1 of underlying Bitcoin collateral, with every outstanding MUSD backed 100% by Bitcoin reserves under a 110% minimum collateralization ratio [S2][S3][S4]. Peg stability is arbitrage-driven against $1 of BTC [S2]. Borrowers bear a 0.1% issuance fee paid in MUSD, fixed interest of 1-5% APR locked at loan open, and a 0.75% redemption fee, waived for borrowers with an active loan [S5][S6][S2].

MUSD is not issued by a single corporate entity; the Mezo network is owned by Supernormal OpCo (BVI) Ltd., incorporated in the British Virgin Islands, with core development by River Delta, Inc., a Delaware corporation, yet Mezo's Terms state neither is the issuer, operator, nor controller of MUSD [S1][S7]. The Services have not been registered with or approved by any regulatory authority [S1]. Each MUSD is a redeemable Bitcoin-collateralized debt claim, not a fund, security, or deposit [S2][S1]. Access is permissionless above an 1,800 MUSD floor but prohibited for OFAC-sanctioned persons and excluded jurisdictions including Iran, Cuba, North Korea, Syria, and Myanmar [S2][S1].

MUSD is issued natively on the Mezo network, a fully EVM-compatible blockchain built on a Cosmos SDK and CometBFT architecture [S3]. Users mint MUSD by depositing BTC collateral into a smart contract vault and redeem onchain for $1 of BTC, with collateral managed through tBTC custody infrastructure and settlement occurring onchain on Mezo [S2][S6].

<Sources
  retrievedAt="2026-06-23"
  items={[
    { id: "S1", url: "https://mezo.org/legal/terms" },
    { id: "S2", url: "https://mezo.org/docs/users/musd/" },
    { id: "S3", url: "https://mezo.org/docs/developers/getting-started/" },
    { id: "S4", url: "https://mezo.org/docs/users/resources/faqs" },
    { id: "S5", url: "https://mezo.org/docs/users/musd/fees" },
    { id: "S6", url: "https://mezo.org/docs/users/musd/architecture-and-terminology/" },
    { id: "S7", url: "https://mezo.org/docs/MEZO_Disclosure.pdf" },
  ]}
/>


Stablecoins

Bitcoin holders bridge BTC into Mezo, where it can be used as collateral to mint MUSD, a Bitcoin-backed stablecoin, or deployed across DeFi applications. Network activity is paid for in MEZO. Holders can stake MEZO to participate in governance.

Mezo is a Bitcoin-native Layer 2 network built for Bitcoin-denominated finance. It enables users to access liquidity against their Bitcoin holdings via MUSD, a Bitcoin-backed stablecoin, alongside lending and yield products without selling the underlying BTC.

Mezo is built by Thesis, the team behind tBTC, Fold, and Taho. The MEZO token is used for governance and gas on the Mezo network.

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Blockchains (L2)

Mezo

Mezo USD (MUSD) is a U.S. dollar stablecoin issued by Mezo.

Each token is redeemable one-for-one for U.S. dollars and is a collateral-backed contractual exposure rather than a direct claim on the issuer.

Custody of the reserves rests with Threshold Network.

Retail investors, professional investors, accredited investors, qualified investors, qualified purchasers, and institutions can mint and redeem directly with Mezo in BTC, and holders have a contractual right to redeem at par.

MUSD has been issued on public blockchains since July 2025 and is native to Ethereum and Base.

Mezo USDMUSD

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