Key Highlights
- Jupiter launched JupUSD, a USD-backed stablecoin on Solana, in partnership with Ethena Labs.
- JupUSD is integrated across Jupiter services, including trading, lending, staking, and prediction markets.
- Reserves are backed by bank-held funds, mainly tokenized U.S. Treasury bonds, to comply with U.S. regulations.
Solana-based exchange Jupiter has officially launched its own stablecoin, JupUSD, in partnership with Ethena Labs.
The stablecoin, announced on Monday, will serve as a liquidity asset across Jupiter’s platform. JupUSD is designed for use in trading, lending, staking, token creation, prediction markets, and the upcoming mobile app.
The stablecoin’s reserves are held in a federally chartered bank and are backed primarily by tokenized U.S. Treasury bonds via BlackRock, aligning the coin with U.S. rules under the GENIUS Act. Jupiter said the stablecoin is immediately usable “across the entire Jupiter product suite” and will act as a unit of account for the platform.
How JupUSD works across Jupiter
JupUSD is already integrated with several Jupiter services, including Jupiter Lend, where depositing the stablecoin will create a reward-earning token called JupUSD. It is also supported on Jupiter Perps, where $500 million worth of USDC will gradually convert to JupUSD to unify liquidity.
The stablecoin will support limit orders, dollar-cost averaging tools, perps trading collateral, and settlement for prediction markets.
At first, 90% of reserves will be held in USDtb, issued by Ethena and backed by BlackRock’s tokenized USD Institutional Digital Liquidity Fund. A secondary pool on the alternative DEX aggregator Meteora will boost liquidity.
This launch is part of Ethena’s effort to help blockchain projects, like MegaETH and Sui, launch their own stablecoins. Plans for the future include adding more backing assets, such as USDe, Ethena’s main token.
Growth and challenges in the market
The stablecoin market has seen increased activity following regulatory developments. The total value of the overall stablecoin market has jumped over 49% to $317 billion after the GENIUS Act was passed into law in 2025. In addition to that, Solana’s stablecoin supply rose by nearly 40% to $14 billion. Jupiter Exchange itself processed over $1 trillion in trades in 2025 and now handles more than half of all decentralized trading on Solana.
Despite the stablecoin launch, Jupiter still faces challenges with its native JUP token, which has dropped 89% from its peak. The token is currently trading for $0.2209, up 2.32% in the last 24 hours but down 2.74% in a month.
Also Read: Jupiter Considers Ending $JUP Buybacks After Spending $70M
