Jupiter is making a strategic move that goes far beyond another product launch. The leading decentralized exchange aggregator on Solana announced it will introduce JupUSD, a native stablecoin built in partnership with Ethena Labs.
The token is expected to go live in Q4 2025, pending the completion of security audits for its Solana-native mint and redemption contracts. The timing signals caution, but also confidence. Jupiter wants this right before it goes big.
How JupUSD Is Backed
JupUSD will launch with full collateralization through USDtb, Ethena’s short-term, treasury-backed stablecoin. USDtb itself is backed by BlackRock’s BUIDL tokenized fund, which holds U.S. Treasury assets. That matters because it anchors JupUSD to real-world yield and institutional-grade collateral from day one.
Ethena’s flagship stablecoin, USDe, currently the third-largest stablecoin behind USDT and USDC, will be added as collateral later. That phased approach reduces risk while keeping upside on the table.
$750 Million Shift Inside Jupiter
Jupiter plans to gradually convert around $750 million in USDC from its Liquidity Provider Pool into JupUSD. This isn’t a cosmetic change. It’s a structural one.
Once live, JupUSD will power five core areas of the Jupiter ecosystem. That includes collateral for decentralized perpetual futures, the default stablecoin for trading interfaces and Jup Mobile, and a major liquidity base on Jupiter Lend. The goal is simple. Keep liquidity inside the ecosystem and make it work harder.
Why Stablecoins Are the Endgame
Jupiter COO Kash Dhanda called stablecoins a foundational piece of the platform’s mission to serve users globally through decentralized rails. Co-founder Siong Ong took it further, arguing that the stablecoin sector could grow 10 to 100 times from today’s levels.
That optimism isn’t coming from nowhere. Jupiter processed nearly $20 billion in trading volume over the past 30 days and generated $1.2 million in revenue in the last 24 hours, according to DefiLlama. The platform already has scale. JupUSD is about control.
A Big Win for Ethena on Solana
For Ethena, this partnership opens the door to Solana’s expanding stablecoin market, which currently sits at just 9.27% of Ethereum’s circulating stablecoin supply. There’s room to grow, and fast.
Ethena founder Guy Young said Jupiter was the obvious choice for its first Solana-based stablecoin collaboration. With USDe, USDtb, and now JupUSD, Ethena’s dollar-pegged products account for just over 5% of the global stablecoin market, which has crossed $303 billion.
The Bigger Trend at Work
Jupiter isn’t alone. Major DeFi protocols are racing to issue their own stablecoins to retain liquidity, reduce external dependencies, and capture fees internally. Aave did it with GHO. Curve followed with crvUSD. Jupiter is simply the latest, and possibly the most aggressive, entrant.
The timing also helps. The stablecoin market has grown around 75% over the past year, and momentum picked up after the passage of the GENIUS Act, which brought long-awaited regulatory clarity to stablecoin issuance and trading.
Crypto wallets like MetaMask and Phantom are rolling out their own stablecoin products. Large corporations, including Amazon, Walmart, and Expedia, are reportedly exploring similar ideas.
Jupiter’s move makes one thing clear. In the next phase of DeFi, owning the stablecoin layer may matter more than owning the exchange itself.
