Solana News Today: Jupiter's JupUSD Aims to Reduce DeFi Reliance on Third-Party Stablecoins

Jupiter, Solana's leading decentralized exchange (DEX) aggregator, has announced plans to launch JupUSD, a Solana-native stablecoin, in partnership with Ethena Labs. The stablecoin, set to debut in mid–Q4 2025, will be fully collateralized by Ethena's USDtb token, which is backed by tokenized U.S. Treasury assets, including BlackRock's USD Institutional Digital Liquidity Fund (BUIDL). Over time, JupUSD will integrate USDe, Ethena's synthetic dollar, to enhance yield potential and stability.

JupUSD will be deeply integrated across Jupiter's ecosystem, serving as collateral on its perpetual futures platform (Jupiter Perps), a liquidity asset in Jupiter Lend, and a trading pair on its swap, pro, and mobile interfaces. The token is also expected to support new products under development. Ethena Labs confirmed that JupUSD will replace approximately $750 million in existing stablecoins within Jupiter's liquidity pools, positioning it as the primary collateral asset for the platform. This transition aims to consolidate liquidity, reduce reliance on third-party stablecoins, and streamline Jupiter's financial infrastructure.

The partnership leverages Ethena's "Stablecoin-as-a-Service" framework, enabling Jupiter to issue a branded stablecoin without building infrastructure from scratch. Ethena's existing stablecoins, USDe and USDtb, have market capitalizations of $14.8 billion and $1.8 billion, respectively, according to DefiLlama. The white-label model is gaining traction, with similar initiatives by SUI Group (suiUSDe and USDi) and North Dakota's Roughrider Coin. Jupiter, which holds $3.58 billion in total value locked (TVL), is the largest protocol on Solana.

The stablecoin market has grown to over $300 billion in total capitalization, driven by institutional adoption and regulatory clarity. JupUSD's launch aligns with this trend, offering a decentralized alternative to centralized stablecoins like USDC and USDT. By anchoring its liquidity to tokenized Treasuries and synthetic instruments, Jupiter aims to balance transparency with yield optimization. Ethena's founder, Guy Swann, noted that the firm's stablecoins already account for 5% of global stablecoin supply and projects growth to $50 billion within two years.

Security and stability remain key priorities. Jupiter stated that smart contracts for minting and redemption will undergo multiple audits before deployment. The gradual migration of $750 million in liquidity to JupUSD is designed to mitigate risks associated with redemption stress and peg volatility. Analysts view the move as part of a broader shift in DeFi, where protocols like Aave (GHO) and Curve (crvUSD) are creating self-contained stablecoin ecosystems to reduce external dependencies.

[1] Coindesk (https://www.coindesk.com/web3/2025/10/08/solana-s-jupiter-to-develop-jupusd-stablecoin-with-backing-from-ethena-labs)

[2] Cryptotimes (https://www.cryptotimes.io/2025/10/09/jupiter-partners-with-ethena-labs-to-launch-jupusd-stablecoin/)

[3] Coincentral (https://coincentral.com/jupiter-teams-with-ethena-labs-to-launch-jupusd-stablecoin-on-solana/)

[4] 99bitcoins (https://99bitcoins.com/news/altcoins/jupiter-stablecoin-jupusd-to-launch-on-solana-in-2025/)

[5] Cointelegraph (https://cointelegraph.com/news/jupiter-ethena-labs-new-solana-stablecoin)

[6] Cryptohead (https://cryptohead.io/news/jupiter-debuts-solana-based-jupusd-backed-by-ethena-labs/)

[7] Coin360 (https://coin360.com/news/jupiter-ethena-launch-solana-jupusd-stablecoin)

[8] Cryptopolitan (https://www.cryptopolitan.com/jupiter-launch-jupusd-stablecoin-with-ethena/)

[9] Coinotag (https://en.coinotag.com/jupusd-may-anchor-solana-defi-as-jupiter-replaces-about-750m-in-stablecoins/)