Jupiter and Ethena Join Forces to Launch Solana’s JupUSD Stablecoin

New Partnership Aims to Establish Solana’s Own Dollar Layer as Stablecoin Demand Surges Past $300B

TL;DR

• Jupiter, Solana’s leading DeFi aggregator, partners with Ethena Labs to introduce JupUSD, a new stablecoin backed by tokenized U.S. Treasuries.
• Around $750 million in existing USDC liquidity from Jupiter’s pools will gradually migrate to JupUSD.
• The launch positions Solana’s ecosystem for deeper liquidity integration as stablecoin market capitalization exceeds $304 billion.

Jupiter, the Solana-based decentralized exchange aggregator that has become a cornerstone of the network’s DeFi ecosystem, is entering the stablecoin arena through a new partnership with Ethena Labs. Together, the two firms will roll out JupUSD, a Solana-native stablecoin backed initially by USDtb, which is backed by BlackRock's BUIDL (a tokenized fund investing in short-term U.S. assets), and later supplemented by Ethena’s USDe, a yield-bearing stablecoin on Ethereum. The collaboration marks a significant step toward creating an independent liquidity backbone for Solana’s financial infrastructure.

The plan calls for a gradual replacement of approximately $750 million in USDC liquidity from Jupiter’s various pools, including its flagship JLP (Jupiter Liquidity Pool), into JupUSD. That shift signals a move to internalize stablecoin flow and reduce reliance on external issuers. Jupiter’s development team confirmed that smart contracts for minting and redemption are currently under audit, with deployment expected in the fourth quarter of 2025. The stablecoin will integrate across every major product in Jupiter’s ecosystem—from Jupiter Perps, which handles perpetual futures trading, to Jupiter Lend, its lending protocol, and standard swap interfaces for retail and institutional traders alike.

Jupiter’s ambition mirrors a growing trend in decentralized finance, where major protocols seek to control their own stablecoin layers. Comparable efforts include Aave’s GHO and Curve’s crvUSD, both designed to consolidate liquidity and reduce dependency on centralized tokens. Ethena’s involvement gives JupUSD a notable foundation: the firm’s USDe stablecoin has surpassed $15 billion in market capitalization, while USDtb, its Treasury-backed counterpart, reportedly stands near $1.8 billion. Together, these assets underpin what Ethena calls its “Stablecoin-as-a-Service” framework, allowing DeFi platforms like Jupiter to launch native stablecoins without starting from scratch.

Solana’s DeFi landscape provides fertile ground for such an initiative. Jupiter ranks as the network’s largest DEX aggregator, recording roughly $20 billion in trading volume over the past 30 days and generating about $1.2 million in daily revenue, according to internal metrics. Total value locked within Jupiter’s products has climbed to $3.58 billion, further highlighting the ecosystem’s scale and maturity. As stablecoins continue to dominate the crypto price index and exert massive influence over the broader crypto price dynamics, Jupiter’s strategic entry into the stablecoin space aligns with broader market momentum.

Industry data shows the overall stablecoin coin market cap now exceeds $304 billion, a 75% increase from a year earlier when it hovered near $173 billion. Ethena’s suite of assets alone accounts for roughly 5% of that total, underscoring the growing importance of tokenized Treasury exposure in decentralized finance. The timing of JupUSD’s rollout also coincides with regulatory developments in the United States, including the proposed GENIUS Act, which aims to formalize stablecoin frameworks and strengthen investor protection.

Jupiter’s chief operating officer, Kash Dhanda, described stablecoins as “a critical component” of building accessible DeFi rails for everyday users, while Ethena founder Guy Young called Jupiter “an obvious candidate” for the firm’s first Solana integration. Their statements frame the initiative as more than a product launch—it represents a structural shift in how Solana manages dollar liquidity within its network.

Security audits remain ongoing, and maintaining price stability across USDtb and USDe collateral layers will be a crucial challenge once migration begins. The gradual rollout is designed to mitigate volatility and ensure resilience under redemption stress. Still, the project’s scale and timing suggest Jupiter and Ethena intend to position JupUSD as a foundational piece of Solana’s on-chain financial infrastructure—an effort that could redefine how stablecoin liquidity interacts with the network’s rapidly expanding DeFi economy.

This article has been refined and enhanced by ChatGPT.