JupUSD is a stablecoin native to the Solana blockchain, developed by the decentralized finance (DeFi) aggregator Jupiter in partnership with Ethena Labs. Announced in October 2025, it is designed to be deeply integrated into the Jupiter ecosystem, serving as a core asset for liquidity, collateral, and trading. ^{[1] [2]}

Overview

JupUSD was introduced as a strategic initiative by Jupiter, a leading protocol on the Solana network, to create a native stablecoin for its expanding suite of DeFi products. The project is a collaboration with Ethena Labs, which provides the underlying infrastructure through its "Whitelabel Stablecoin-as-a-Service" program. This model allows other protocols and layer-one chains to deploy their own branded stablecoins using Ethena's established technology for collateral management and minting. ^{[3] [4]}

The primary motivation behind JupUSD is to enhance on-chain liquidity within the Solana ecosystem, reduce reliance on third-party stablecoins, and capture value internally. By establishing its own stablecoin, Jupiter aims to create a more capital-efficient and integrated user experience across its platforms, including its perpetuals exchange, lending markets, and trading interfaces. The launch of JupUSD aligns with a broader trend in the DeFi sector, where major protocols like Aave and Curve Finance have developed their own native stablecoins (GHO and crvUSD, respectively) to strengthen their ecosystems. ^{[2] [5]}

To ensure a robust launch, Jupiter announced plans to bootstrap the stablecoin's liquidity by progressively converting approximately $750 million of its existing stablecoin reserves, primarily held in USDC within its liquidity provider pools, into JupUSD. This strategy is intended to establish a significant market presence for the stablecoin from its inception. ^{[6] [4]}

History

The development of JupUSD was officially announced on October 8, 2025, through a joint statement by Jupiter and Ethena Labs. The announcement detailed the partnership and the strategic vision for the stablecoin within the Solana ecosystem. The planned launch window for JupUSD is set for the fourth quarter of 2025, contingent upon the successful completion of multiple security audits for its Solana-native minting and redemption smart contracts. ^{[1] [2]}

Technology and Mechanism

The architecture of JupUSD is built upon Ethena Labs' existing stablecoin infrastructure, featuring a phased collateralization strategy designed to balance stability with yield generation potential.

Collateralization Model

JupUSD's backing is structured to evolve after its initial launch.

• Initial Backing: At its debut, JupUSD will be fully collateralized by USDtb, a stablecoin issued by Ethena Labs. USDtb is backed by tokenized real-world assets (RWAs), primarily short-term U.S. Treasury assets held through BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). This provides JupUSD with a transparent and low-risk collateral base derived from traditional financial instruments. USDtb was launched in partnership with Anchorage Digital, a federally chartered crypto bank, and was the first stablecoin issued under the U.S. GENIUS Act standards. ^{[4] [5]}
• Future Integration: The development roadmap includes the potential to add Ethena's synthetic dollar, USDe, as a secondary backing asset over time. The integration of USDe is intended to optimize yield for JupUSD holders. USDe maintains its peg to the U.S. dollar through a delta-hedging strategy, which involves balancing staked crypto assets (such as Ether) with corresponding short derivatives positions. At the time of the announcement, USDe was the largest decentralized stablecoin by supply, with a market capitalization of $14.8 billion. ^{[2] [1]}

Infrastructure

JupUSD is a product of Ethena's "Whitelabel Stablecoin-as-a-Service" offering. This framework provides partner protocols like Jupiter with the necessary infrastructure to issue their own branded stablecoins without having to build the complex collateral management and minting systems from scratch. Ethena manages the underlying assets and ensures the stability of the peg, while Jupiter focuses on the branding, distribution, and integration of JupUSD within its ecosystem. The smart contracts governing the minting and redemption of JupUSD on Solana are being custom-built for the project and are scheduled to undergo extensive security audits prior to public release to ensure their reliability and safety. ^{[3] [2]}

Ecosystem Integration and Use Cases

Jupiter plans to deeply embed JupUSD across its entire product suite, making it the central stablecoin of its ecosystem. The integration strategy is designed to enhance user experience, improve liquidity, and create a self-sustaining economic loop within the platform.

The planned use cases for JupUSD include:

• Collateral for Perpetuals: Serving as a primary collateral asset on Jupiter's decentralized perpetuals exchange.
• Primary Trading Pair: Functioning as the base stablecoin for trading pairs on Jupiter's main trading interface and its mobile application.
• Lending and Borrowing: Acting as a major liquidity hub on the Jupiter Lend protocol.
• DEX Liquidity: Serving as a key pairing token on Meteora, a major decentralized exchange (DEX) and partner of Jupiter.
• Future Products: Being the default stablecoin integrated into all new products and services launched by Jupiter.

This comprehensive integration is intended to drive demand and utility for JupUSD, positioning it as a foundational component of DeFi on Solana. ^{[4] [5]}

Partnerships

The creation of JupUSD is founded on a core partnership between Jupiter and Ethena Labs. Jupiter, as the branded issuer, leverages its position as a leading DeFi aggregator on Solana to drive adoption and integration. Ethena Labs provides the foundational technology, collateral management, and minting framework. ^[6]

Through its collateral, JupUSD is also connected to established financial institutions. The primary backing, USDtb, is collateralized by assets held in BlackRock’s BUIDL fund, linking the stablecoin to tokenized real-world assets managed by one of the world's largest asset managers. Furthermore, the issuance of USDtb was facilitated through a partnership between Ethena and Anchorage Digital, a federally chartered crypto bank, which adds a layer of regulatory and compliance credibility to the underlying collateral. ^{[5] [4]}

Key Figures

Several key individuals were associated with the announcement and strategy of JupUSD. Siong Ong, co-founder of Jupiter, commented on the project's strategic importance for the platform's growth in the DeFi sector. Guy Young, founder of Ethena Labs, highlighted JupUSD as the latest addition to Ethena's whitelabel product line and noted Solana's expanding DeFi environment as a key motivator for the partnership. Kash Dhanda, Chief Operating Officer at Jupiter, also emphasized the significance of the launch for Jupiter's business and product suite. ^{[5] [6]}

Quotes

In the announcement, key figures from both organizations shared their vision for the project. Siong Ong, co-founder of Jupiter, stated:

"Stablecoins have proven true product-market fit on-chain, and we believe the sector will 10–100x from here. JupUSD represents a major step forward for Jupiter to enter the game, create more value across the ecosystem, and ensure Jupiter remains at the center of all things DeFi.” ^[4]

Guy Young, founder of Ethena Labs, remarked on the expansion of their service:

"JupUSD marks the latest addition to Ethena's Whitelabel product lineup, which is already powering stablecoin partnerships with industry leaders such as SUI and MegaETH." ^[4]