Ethena Labs and Jupiter have announced a strategic partnership to launch JupUSD—a new stablecoin native to the Solana network. The token launch is scheduled for the fourth quarter, and its integration will cover the entire Jupiter ecosystem stack, including trading interfaces, lending products, and decentralized futures.
$750M in liquidity to move from USDC to JupUSD
As part of the agreement, Jupiter plans to gradually convert about $750 million in USDC from its liquidity pool into the new JupUSD stablecoin. Thus, the project will effectively create an internal dollar ecosystem fully based on Solana.
Ethena, known for its decentralized synthetic dollar USDe, is expanding its line of solutions in the stable token segment. Previously, the company released USDtb—the first stablecoin created in collaboration with Anchorage Digital bank and compliant with GENIUS Act standards.
“JupUSD is another addition to our portfolio of White Label products, which are already used by partners such as SUI and MegaETH,” noted Ethena founder Guy Young.
Integration of JupUSD into the Jupiter ecosystem
JupUSD will become a central element of Jupiter’s DeFi infrastructure. According to the project, the token will be used in five key areas:
- as collateral on Jupiter’s decentralized futures platform
- as the main stablecoin in trading interfaces and the Jup Mobile app
- as a base liquidity asset on the Jupiter Lend platform
- as a liquid pair on the DEX platform Meteora, a key Jupiter partner
- in all new products the company plans to launch in the coming months
According to Jupiter co-founder Sion Ong, stablecoins have proven their viability in the on-chain environment:
“We are confident that this segment will grow 10–100 times. JupUSD will be a key step for Jupiter to create additional value for users and secure its role as the DeFi hub on Solana.”
Financial backing and collateralization of the token
At launch, JupUSD will be 100% backed by the USDtb stablecoin, which invests funds in the tokenized BlackRock USD Institutional Digital Liquidity Fund (BUIDL). In the future, the project is considering switching to USDe as collateral.
Recall, USDe is the largest decentralized stablecoin with a capitalization of about $14.8 billion, using delta-hedging with ETH collateral and derivatives. It has already surpassed DAI and USDS in supply volume.
For comparison, centralized giants USDT and USDC have market capitalizations of $177 billion and $74 billion, respectively, but JupUSD will be the first major native solution for Solana with institutional support.
A new stage for Solana and DeFi
Solana is actively increasing its share of the stablecoin market, which currently accounts for only 9.3% of Ethereum’s volume, according to The Block. The emergence of JupUSD could be a growth catalyst—especially considering that Jupiter has already become the largest DEX aggregator on Solana and is developing lending and AI integration directions.
Investors boost confidence in Ethena
In September, UAE-based M2 Capital fund invested $20 million in the ENA governance token, joining a list of investors that includes Binance Labs, Bybit, Dragonfly, Fidelity, and Franklin Templeton.
This support underscores the desire of major institutional players to secure positions in the fast-growing decentralized stablecoin segment.
What’s next?
The launch of JupUSD could be a turning point for Solana, which until now has been dominated by USDC and USDT. The new token will unite liquidity, infrastructure, and decentralization, creating the foundation for the next stage of growth in the network’s DeFi sector.
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