Jupiter, a leading decentralized exchange (DEX) aggregator on Solana, is partnering with Ethena Labs to launch JupUSD, a new Solana-native stablecoin. The collaboration aims to enhance on-chain liquidity and expand Solana's stablecoin ecosystem. The stablecoin is slated to debut in the fourth quarter of 2025, pending security audits of its Solana-native contracts.
As part of the launch, Jupiter plans to progressively convert approximately $750 million of USDC from its Liquidity Provider Pool into JupUSD. This move will provide initial liquidity for the new asset and integrate JupUSD into key areas of the Jupiter ecosystem, including Jupiter Perps and Jupiter Lend. The goal is to establish a unified liquidity base across Jupiter's trading, lending, and perpetual markets, replacing USDC as the dominant unit of account on the platform.
Initially, JupUSD will be backed by USDtb, a tokenized-asset stablecoin linked to BlackRock's BUIDL fund. Over time, the collateral sources may expand to include Ethena's synthetic dollar, USDe, to optimize yield for holders while maintaining dollar stability. Ethena's USDe is the world's largest decentralized synthetic dollar.
The partnership extends Ethena's Stablecoin-as-a-Service model, enabling protocols to create custom digital dollars using its infrastructure. Ethena has previously launched its native stablecoin, USDe, on Solana. Founder of Ethena, Guy Young, stated that JupUSD is the latest addition to Ethena's Whitelabel product lineup, which already powers stablecoin partnerships with industry leaders such as SUI and MegaETH.
Solana's stablecoin market is relatively small compared to Ethereum's, accounting for approximately 9.27% of Ethereum's circulating stablecoin supply. Analysts suggest that JupUSD could help narrow this gap, particularly if Jupiter successfully converts its USDC reserves and secures greater ecosystem adoption.
The launch of JupUSD occurs as stablecoins gain prominence as the backbone of DeFi liquidity and face increasing regulatory scrutiny. The proposed U.S. Stablecoin bill, the Genius Act, seeks to formalize reserve standards and licensing for issuers, potentially accelerating the rise of compliant, on-chain dollars. The stablecoin market capitalization across blockchains currently exceeds $300 billion, with Solana's stablecoin market cap exceeding $15.3 billion.
Jupiter is currently Solana's biggest chain by total value locked (TVL), with approximately $3.6 billion in TVL and a growing presence across swaps, perps, and structured products. The integration of JupUSD is expected to tighten liquidity loops across these products and reduce reliance on external stablecoins.
Ethena's growing list of backers, including Binance Labs, Dragonfly, Fidelity, Franklin Templeton, and M2 Holdings, demonstrates the institutional support for its model. With Solana emerging as a highly active DeFi ecosystem, a native Solana stablecoin backed by credible collateral could solidify Jupiter's position as a liquidity hub and establish Ethena as a foundational layer in the next generation of stablecoin infrastructure.
The success of JupUSD will depend on its stability and adoption following its launch.
