- Jupiter collaborates with Ethena Labs to launch JupUSD, enhancing Solana’s DeFi infrastructure.
- JupUSD will be backed by USDtb, offering real-world asset collateralization and will add USDe as collateral to optimize yield rates.
- The stablecoin is scheduled to launch in the fourth quarter of 2025.
Jupiter, a leading decentralized exchange (DEX) aggregator on the Solana blockchain, announced its partnership with Ethena Labs to introduce JupUSD, a Solana-native stablecoin. In a video posted on X, the founders of Jupiter and Ethena explain why this collaboration matters. And confirm that JupUSD will go live in Q4 of 2025.
How JupUSD works?
JupUSD will be fully backed by USDtb, a USD-pegged stablecoin introduced by Ethena earlier this year in partnership with federally chartered crypto bank Anchorage Digital. USDtb primarily invests in BlackRock’s tokenized USD Institutional Digital Liquidity Fund (BUIDL)
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This provides it with a degree of real-world asset collateralization that is uncommon among decentralized stablecoins. Over time, Jupiter plans to integrate USDe, Ethena’s synthetic dollar, to further optimize yield rates and collateral flexibility.
According to StockWits, Jupiter intends to progressively convert approximately $750 million worth of stablecoins from its Liquidity Provider Pool into JupUSD, effectively seeding initial liquidity for the new asset.
JupUSD will have deep integrations across Jupiter products. It can be used as Collateral on Jupiter Perps, liquidity in Jupiter Lend and can be used for trading on Swap, Pro, and mobile.
Stablecoin market overview
The stablecoin market has seen significant growth, with its market capitalization now exceeding $300 billion. Ethena have themselves minted $16 billion in stablecoins. On the Solana blockchain, stablecoins account for more than $15.3 billion, playing a critical role in DeFi ecosystems. JupUSD’s introduction is poised to bolster Solana’s position in real-time settlement and DeFi liquidity.
