Jupiter Exchange Launches JupUSD Stablecoin with BlackRock-Backed Reserves

TLDR:

• JupUSD maintains 90% reserves in USDtb collateralized by BlackRock’s BUIDL Fund with 10% USDC buffer. 
• Three independent security audits completed before launch with institutional custody through Anchorage Digital. 
• Jupiter Lend integration offers exclusive promotional rewards for jlJupUSD token holders beyond standard yields. 
• Stablecoin will expand across Limit Orders, DCA, Mobile, Perps, and prediction markets on Jupiter platform.

Jupiter Exchange has introduced JupUSD, a reserve-backed stablecoin pegged to the US Dollar. The platform announced the launch through its official X account, positioning the new token as infrastructure for decentralized finance operations. 

Built in collaboration with Ethena Labs, JupUSD operates on established stablecoin mechanisms with institutional-grade custody solutions. 

The token aims to serve as a unified currency across Jupiter’s product ecosystem while maintaining a one-to-one peg with the US Dollar.

Reserve Structure and Security Framework

The stablecoin’s reserve composition follows a conservative allocation strategy at launch. Initially, 90% of backing will consist of USDtb, a regulated stablecoin collateralized by BlackRock’s BUIDL Fund. 

The remaining 10% provides a liquidity buffer through USDC holdings. This structure offers compliance with GENIUS standards while maintaining redemption flexibility.

Jupiter plans to gradually incorporate USDe into the reserve mix over time. This adjustment would enhance operational flexibility and improve economic efficiency for the broader ecosystem. The transition approach allows for risk management while expanding reserve diversification.

Security measures include custody through Porto, operated by Anchorage Digital. The platform selected institutional-grade self-custody to protect reserve assets. 

Additionally, the codebase underwent three independent security audits from Offside Labs, Guardian Audits, and Pashov Audit Group before deployment.

Integration Across Jupiter Ecosystem

JupUSD connects with Jupiter Lend to enable lending, borrowing, and leverage operations. Users depositing into Lend’s Earn Vaults receive jlJupUSD tokens with promotional rewards. 

These benefits supplement standard lending yields and remain exclusive to JupUSD deposits. The platform also plans to establish borrow vaults for additional liquidity provision.

The stablecoin will expand across Jupiter’s product suite in phases. Integration includes Limit Orders and Dollar-Cost Averaging features with reward mechanisms. 

Mobile applications will incorporate JupUSD for streamlined user experience. Perpetual trading platforms will accept the token as JLP collateral.

Prediction markets represent another use case for settlement operations. Jupiter’s unified product architecture enables these cross-platform integrations without fragmentation. 

The approach creates a single-dollar standard across all services. This design reduces friction for users moving between different Jupiter products while maintaining consistent collateral requirements.

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Source: https://blockonomi.com/jupiter-exchange-launches-jupusd-stablecoin-with-blackrock-backed-reserves/