Jupiter Launches JupUSD Stablecoin Backed by BlackRock BUIDL Fund on Solana

TLDR

• Jupiter launched JupUSD, a dollar-pegged stablecoin built on Solana in partnership with Ethena Labs, with 90% reserves backed by BlackRock’s BUIDL tokenized money market fund
• The remaining 10% of reserves are held in USDC for liquidity, with custody managed by Porto through Anchorage Digital and verified onchain
• JupUSD deposits in Jupiter’s lending product generate yield-bearing tokens that can be used in limit orders and dollar-cost averaging features
• Jupiter plans to integrate JupUSD into its perpetuals platform and allow institutions to mint and redeem against USDC in single transactions
• Jupiter’s JUP token rose 18% in the past week, while the $308 billion stablecoin market sees more platforms launching application-specific tokens

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Jupiter, a Solana-based decentralized finance platform, announced the launch of JupUSD on Monday. The new stablecoin was developed with Ethena Labs and maintains a dollar peg through reserve assets.

The stablecoin allocates 90% of its reserves to USDtb, a licensed stablecoin backed by shares in BlackRock’s BUIDL tokenized money market fund. Jupiter holds the remaining 10% in USDC to provide immediate liquidity through a secondary pool on Meteora.

JupUSD functions as an SPL token, following Solana’s standard token format for compatibility across the network’s applications. Porto manages custody services through Anchorage Digital, with all reserves verifiable onchain.

Integration Across Jupiter Platform

Jupiter’s lending product allows users to deposit JupUSD and receive yield-bearing tokens in return. These tokens continue generating returns while being used in other platform features like limit orders and dollar-cost averaging.

The protocol plans to integrate JupUSD into its perpetuals trading platform. This integration will gradually replace USDC collateral and liquidity pool balances with the new stablecoin.

Institutional users and market makers can mint and redeem JupUSD against USDC through single-transaction settlements on Solana. This process allows for direct onchain operations without multiple steps.

Ethena Labs handles reserve management for JupUSD. The company coordinates custody and rebalances backing assets using segregated onchain addresses with transparent capacity signals.

Market Response and Token Performance

The JUP governance token increased approximately 18% over the past seven days according to CoinGecko data. This price movement coincided with the JupUSD announcement.

Ethena Labs operates the Ethena protocol and issues both USDe and USDtb stablecoins. The company brings its stablecoin management experience to the Jupiter partnership.

Growing Trend of Platform-Specific Stablecoins

The stablecoin market totals approximately $308 billion with Tether’s USDT and Circle’s USDC maintaining dominant positions. However, 2025 has seen multiple platforms launching their own specialized stablecoins.

MetaMask announced plans in August to release a dollar-denominated stablecoin for use across its wallet and the Linea DeFi ecosystem. The token will integrate into swaps, on-ramps, and bridging features.

Hyperliquid launched USDH in September as native collateral for its perpetual futures exchange. Native Markets manages the stablecoin’s reserves, which consist of cash and US Treasury equivalents.

Klarna, a Swedish payments company, deployed a dollar-pegged stablecoin on the Tempo blockchain in November. The company initially uses the token for internal purposes, including reducing international payment costs.

SoFi Technologies launched SoFiUSD on December 18 as a fully reserved US dollar stablecoin. The token targets fintechs, banks, and enterprise platforms for low-cost settlement.

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