Jupiter partners with Ethena to launch JupUSD stablecoin on Solana

Key Takeaways

Why is the JupUSD update important?

It signals Jupiter’s ambition to create Solana’s native liquidity backbone.

How big is the opportunity?

With the stablecoin market cap over $300 billion, even modest adoption could make JupUSD one of the largest ecosystem-native stablecoins in DeFi.

Solana’s largest decentralized exchange aggregator, Jupiter, has unveiled plans for JupUSD – A new Solana-native stablecoin aimed at deepening on-chain liquidity across its ecosystem.

Jupiter enters the stablecoin race!

The announcement on 8 October follows a partnership with Ethena Labs, with the stablecoin expected to launch later this quarter after completion of audits. 

JupUSD will be backed initially by USDtb, before expanding collateral sources to include Ethena’s synthetic dollar – USDe.

According to Jupiter, the goal is to create a unified liquidity base across its trading, lending, and perpetual markets. It will replace USDC as the dominant unit of account on the platform. The project plans to gradually convert roughly $750 million worth of USDC into JupUSD through its liquidity pools.

A growing stablecoin ecosystem

The launch comes at a time when stablecoins have become the backbone of DeFi liquidity and are now under increasing regulatory attention. The proposed U.S Stablecoin bill, the Genius Act, aims to formalize reserve standards and licensing for issuers – A move that could accelerate the rise of compliant, on-chain dollars.

According to CoinMarketCap, across blockchains, stablecoin market capitalization now exceeds $300 billion. On Solana, where Jupiter is, the stablecoin market cap is more than $15.3 billion.

By adding a native stablecoin, Jupiter is reinforcing Solana’s dominance in real-time settlement and DeFi liquidity. 

Jupiter’s role in Solana’s DeFi stack

Jupiter is currently Solana’s biggest chain by total value locked [TVL].

According to data from DefiLlama, it has about $3.6 billion in TVL and a growing presence across swaps, perps, and structured products. The integration of JupUSD is expected to tighten liquidity loops across these products and reduce reliance on external stablecoins.

Source: DefiLlama

Still, any new stablecoin faces a test of trust, peg resilience, and regulatory clarity. Particularly as global oversight becomes tighter.

Whether JupUSD becomes a foundational asset on Solana or remains a niche liquidity tool will depend on its stability and uptake once it goes live later this year.