Jupiter and Ethena Labs worked together to produce a new stablecoin for Solana dubbed JupUSD. The token is meant to be a single dollar-pegged asset that works with all of Jupiter’s decentralized finance systems. In the last three months of 2025, JupUSD will be available.
When it first comes out, Jupiter will mostly back JupUSD with USDtb, an asset created by Ethena that holds tokenized short-term U.S. Treasury assets linked to BlackRock’s USD Institutional Digital Liquidity Fund, which is also called the BUIDL fund. This backing will tie the stablecoin to real-world assets.
Over time, Jupiter wants to turn about $750 million of stablecoin liquidity, most of which is in USDC, into JupUSD. The goal of this conversion is to make JupUSD the main asset for settling and providing liquidity in Jupiter’s ecosystem.
The partnership with Ethena employs Ethena’s Stablecoin-as-a-Service architecture, which lets protocols produce branded stablecoins that are backed by institutional assets. Jupiter plans to incorporate Ethena’s synthetic stablecoin USDe as secondary collateral over time to give JupUSD investors more freedom and higher returns.
JupUSD will work with several parts of Jupiter’s DeFi stack. It will be used as collateral on Jupiter’s perpetual futures market, help people lend and borrow money on its lending protocol, and be a base trading asset on swap interfaces. The stablecoin will also be connected to market-making and liquidity pool activities.
By making JupUSD the main currency for settling transactions on the platform, Jupiter wants to depend less on outside stablecoins. This change is meant to make liquidity easier, trading smoother, and give all products a consistent stablecoin layer.
Before they can be used on Solana, audits are being done on the smart contracts that will be used to mint and redeem JupUSD. Once the rollout is complete, users and liquidity providers will be able to use the new asset.
The partnership puts JupUSD next to other new native stablecoins and shows that decentralized finance is still working to make settlement assets that are tailored to certain ecosystems.
Source: https://cointelegraph.com/news/jupiter-jupusd-stablecoin-onchain-settlement-solana
