Jupiter Launches JupUSD Stablecoin Built on Ethena Infrastructure

Jupiter, the leading decentralized exchange on Solana, has launched JupUSD, a reserve-backed stablecoin pegged to the U.S. dollar and designed for integration across its trading and lending ecosystem.

The stablecoin, built in collaboration with Ethena Labs, will initially hold 90% of reserves in USDtb—a licensed, GENIUS-compliant stablecoin collateralized by BlackRock's BUIDL Fund—with a 10% USDC liquidity buffer paired with a secondary pool on Meteora, according to a Monday announcement on X.

Jupiter plans to eventually transition a portion of reserves to Ethena's USDe for additional flexibility and yield efficiency within its ecosystem.

The launch positions Jupiter to capture stablecoin transaction volume within its own ecosystem while offering users yield opportunities through its lending protocol – a strategy that could strengthen network effects across its platform.

Security-First Architecture

JupUSD employs institutional-grade self-custody through Porto by Anchorage Digital, with the codebase fully open-sourced. Three independent audits from Offside Labs, Guardian, and Pashov Audit Group were completed before launch.

While JupUSD itself is not yield-bearing, it features deep integration with Jupiter Lend, allowing users to lend, borrow, or multiply positions with benefits unavailable for other stablecoins. Deposits into Lend's Earn Vaults receive jlJupUSD, which provides promotional rewards on top of standard lending yields. The platform will also establish borrow vaults to provide additional liquidity and utility.

Jupiter plans to integrate JupUSD across its full product suite, including Limit Orders and DCA with rewards-while-you-wait functionality, its mobile app for unified balance experiences, perpetuals via JLP collateral, and prediction markets for settlement.

Ecosystem Strategy

The stablecoin was first announced at Solana Breakpoint last year as part of a number of ecosystem upgrades. Jupiter executives argued that controlling both the dollar token and transaction platform would create benefits across use cases through a self-reinforcing flywheel effect.

Other announced upgrades include Jupiter Lend exiting beta and going fully open-source, upgrading Jupiter Verify into a comprehensive data layer for token verification to combat scams, deploying a unified dashboard for developers using Jupiter APIs, creating a professional trading terminal, implementing a unified incentives system, and acquiring peer-to-peer lending protocol Rain.fi with an offer book launch scheduled for Q1 2026.

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