Jupiter to Launch JupUSD Stablecoin on Solana with Ethena

Jupiter’s collaboration with stablecoin issuer Ethena represents a significant milestone for both platforms within the Solana ecosystem. According to Ethena founder Guy Young, Jupiter was “a very obvious candidate for the first stablecoin partnership that we have within Solana,” highlighting the strategic importance of this alliance. The partnership leverages Ethena’s established stablecoin infrastructure while providing Jupiter with a customized stablecoin solution tailored to its growing DeFi stack.

The collateral structure for JupUSD demonstrates a multi-layered approach to stability and trust. Initially, the stablecoin will be fully collateralized by Ethena’s USDtb, which itself is backed by BlackRock’s BUIDL tokenized fund representing investments in short-term U.S. treasuries. This creates a chain of credibility extending from traditional finance heavyweight BlackRock through to the new stablecoin. Later, Ethena’s flagship stablecoin USDe—currently the third largest stablecoin behind Tether’s USDT and Circle’s USDC—will be added as additional collateral, further diversifying the backing assets.

Jupiter Chief Operating Officer Kash Dhanda emphasized the critical role of stablecoins in the platform’s broader vision, stating that “Jupiter aims to serve every person on this planet using DeFi rails. Stablecoins are a critical component of that.” This perspective underscores how essential stable digital assets have become for enabling global access to decentralized financial services.

JupUSD is designed to become deeply integrated across Jupiter’s entire product suite, reflecting a comprehensive approach to stablecoin utility. The stablecoin will serve as collateral for perpetual futures trading, provide liquidity within Jupiter’s lending protocol, and function as a trading pair across its swap products on both desktop and mobile platforms. This multi-faceted integration strategy ensures JupUSD will have immediate utility and demand within one of Solana’s most active DeFi ecosystems.

The timing of this launch aligns with Jupiter’s impressive market position as the largest DEX aggregator on Solana. According to DefiLlama data, Jupiter processed close to $20 billion in trading volume over the last 30 days and generated $1.2 million in revenue in the past 24 hours alone. This substantial user base and transaction volume provides a ready-made adoption pathway for JupUSD, potentially accelerating its market penetration.

Currently, the technical infrastructure for JupUSD is being developed with contracts for minting and issuance being built and prepared for audits ahead of the Q4 launch. This careful approach to development and security reflects the importance both companies place on ensuring a robust and trustworthy stablecoin product.

The launch of JupUSD occurs against the backdrop of remarkable growth in the stablecoin sector. The total stablecoin market cap has ballooned to over $303 billion, representing a 75% increase from its $173 billion valuation at the same time last year. Ethena’s existing stablecoin products, USDe and USDtb, already constitute just over 5% of this expanding market, demonstrating the company’s established presence in the sector.

Regulatory developments have provided significant momentum for stablecoin adoption. The passing of the GENIUS Act earlier this year established a clear regulatory framework for stablecoin trading and issuance, marking a major victory for the industry. Experts previously told Decrypt that this legislation could lead to thousands of stablecoin products from notable companies, and this prediction appears to be materializing as major players enter the space.

The trend toward stablecoin adoption is accelerating beyond traditional crypto companies. Recent months have seen crypto wallets like MetaMask and Phantom unveil their own stablecoin products, while according to a June Wall Street Journal report, mainstream firms including Amazon, Walmart, and Expedia have considered launching stablecoin offerings. This broadening interest underscores the growing recognition of stablecoins’ utility across both crypto-native and traditional business models.