Jupiter, the leading decentralized exchange aggregator on the Solana network, announced Wednesday that it will launch JupUSD, a native stablecoin built in collaboration with Ethena Labs. The token is scheduled to go live in the fourth quarter of 2025, pending completion of security audits on its Solana-native mint and redeem contracts.
JupUSD will initially be fully collateralized by USDtb, Ethena's short-term treasury-backed stablecoin that itself is backed by BlackRock's BUIDL tokenized fund representing investments in U.S. treasuries. Ethena's flagship stablecoin, USDe, the third-largest stablecoin behind Tether's USDT and Circle's USDC, will be added as collateral at a later stage.
As part of the arrangement, Jupiter plans to progressively convert approximately $750 million of USDC from its Liquidity Provider Pool into JupUSD. The integration will see JupUSD function across five key areas within the Jupiter ecosystem, including as collateral for decentralized perpetual futures trading, a primary stablecoin for trading interfaces and Jup Mobile, and a major liquidity hub on Jupiter Lend.
Jupiter Chief Operating Officer Kash Dhanda stated that stablecoins represent a critical component of the platform's mission to serve users globally through decentralized finance rails. Jupiter co‑founder Siong Ong added that the sector is positioned for significant expansion, with the potential to grow 10 to 100 times from current levels.
The collaboration marks a significant expansion for Ethena on Solana and could unlock the network's growing stablecoin market, which currently represents approximately 9.27 % of Ethereum's circulating stablecoin supply. Jupiter processed close to $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 data.
Ethena founder Guy Young described Jupiter as an obvious candidate for the first stablecoin partnership within Solana. JupUSD joins Ethena's expanding portfolio of dollar‑pegged offerings, which, together with USDe and USDtb, comprise just over 5 % of the total stablecoin market capitalization that has grown to more than $303 billion.
The move reflects a broader trend among major DeFi protocols toward issuing their own stablecoins to retain liquidity and fee revenue internally, similar to strategies adopted by Aave with GHO and Curve with crvUSD. The stablecoin market has expanded approximately 75 % over the past year, growing from $173 billion.
Recent momentum has accelerated following passage of the GENIUS Act earlier this year, which established a regulatory framework for stablecoin trading and issuance. Crypto wallets including MetaMask and Phantom have recently unveiled their own stablecoin products, while major corporations such as Amazon, Walmart and Expedia have reportedly explored similar initiatives.