The new token will eventually replace $750 million worth of stablecoins in Jupiter’s liquidity pool.
Ethena Labs has partnered with Jupiter – the top decentralized exchange (DEX) aggregator on the Solana blockchain with a total value locked (TVL) of $3.58 billion – to launch JupUSD, a new stablecoin built on Solana, the company said Wednesday.
According to Ethena, JupUSD was developed using its “Stablecoin-as-a-Service” platform and will be used across all major parts of the Jupiter ecosystem. That includes Jupiter Perps, where about $750 million in stablecoins in the platform’s JLP pool will gradually be replaced by JupUSD, and Jupiter Lend, where it will act as the main lending asset, Ethena said on X.
The stablecoin is still in development and is expected to launch in the coming months. At first, it will be backed by USDtb, Ethena’s synthetic stablecoin, which is currently the ninth-largest in circulation with a market capitalization of $1.8 billion, according to DeFiLlama.
However, Ethena revealed that over time, the collateral backing may expand to include USDe, its synthetic dollar. USDe currently has a market capitalization of over $15 billion, up 130% from $5.7 billion in June, making it the third-largest circulating stablecoin, according to DeFiLlama data.
The partnership not only underscores Ethena’s continued expansion beyond Ethereum, where USDe is built, but also strengthens Solana’s growing decentralized finance (DeFi) ecosystem, which has recorded rising stablecoin activity this year.
Currently, the broader stablecoin sector boasts a market capitalization of nearly $304 billion, up $5 billion over the past week alone. Of that amount, $15 billion is on Solana, up 2% over the past week.
JupUSD is the latest stablecoin to emerge from Ethena’s Stablecoin-as-a-Service product line, which lets projects issue their own stablecoins. Last month, MegaETH Labs, the team behind the MegaETH blockchain, introduced MegaUSD (USDm), a native stablecoin it built in partnership with Ethena Labs.
The news follows a series of partnerships between Ethena and other DeFi platforms this year. In May, Ethena expanded to the TON blockchain, where it deployed USDe and sUSDe. The integration, which makes sUSDe available as tsUSDe within Telegram’s in-app wallets, gave around one billion users access to stablecoin yield.
And then this past summer, Ethena deployed USDe and staked USDe (sUSDe) on Layer 1 blockchain Avalanche, which currently has a TVL of $2.2 billion, per DeFiLlama.
Ethena’s native token ENA is currently trading at $0.56, up 1% on the day. Meanwhile, Jupiter’s native token JUP is changing hands at $0.44, flat on the day, per CoinGecko.