Solana News Today: Jupiter's JupUSD to Deepen Solana DeFi Liquidity

Jupiter, a leading decentralized exchange (DEX) aggregator on the Solana blockchain, announced the development of its native stablecoin, JupUSD, which is expected to launch by the end of 2025 or early 2026. The stablecoin will be fully collateralized by Ethena Labs' USDtb, a stablecoin backed by tokenized treasury assets from BlackRock's BUIDL fund, and may later transition to Ethena's USDe as a secondary backing asset to enhance yield potentialSolana's Jupiter to Develop JupUSD Stablecoin With Backing From Ethena Labs^[1]. This initiative aims to deepen liquidity within Solana's decentralized finance (DeFi) ecosystem and reduce cross-chain friction for usersEthena Labs, Jupiter Partner to Launch JupUSD Stablecoin on Solana^[2].

JupUSD will be integrated across Jupiter's ecosystem, including its perpetuals platform, lending markets, and trading interfaces, with smart contracts for minting and redemption undergoing multiple audits before launchSolana's Jupiter to Develop JupUSD Stablecoin With Backing From Ethena Labs^[1]. The DEX, which currently holds $3.58 billion in total value locked (TVL), plans to migrate $750 million in USDC liquidity to JupUSD, creating a self-contained dollar ecosystem on SolanaEthena and Jupiter Join Forces to Launch JupUSD on Solana^[3]. Ethena Labs, known for its $14.95 billion market-cap USDe stablecoin, emphasized that JupUSD will expand its whitelabel stablecoin-as-a-service offerings, already used by partners like SUI and MegaETHEthena Labs, Jupiter Partner to Launch JupUSD Stablecoin on Solana^[2].

The collaboration between Jupiter and Ethena Labs aligns with broader trends in the stablecoin market, which surpassed $313.6 billion in total value in October 2025Solana's Jupiter to Develop JupUSD Stablecoin With Backing From Ethena Labs^[1]. Ethena's USDe accounts for approximately 5% of the stablecoin market, while Tether's USDT and Circle's USDC hold 58% and 25%, respectively. Industry executives anticipate further growth driven by regulatory developments, such as the U.S. GENIUS Act, and institutional interest in decentralized stablecoinsEthena Labs, Jupiter Partner to Launch JupUSD Stablecoin on Solana^[2].

JupUSD's design leverages Solana's high-performance infrastructure to provide stable liquidity for DeFi applications. The token will initially be 100% backed by USDtb, which invests in tokenized U.S. Treasury securities, but may shift to USDe-a synthetic stablecoin using delta-hedging strategies with ETH collateral-to unlock yield opportunitiesEthena and Jupiter Join Forces to Launch JupUSD on Solana^[3]. This flexibility aims to address Solana's smaller stablecoin volume compared to Ethereum, positioning JupUSD as a competitive on-chain asset.

The partnership also reflects Ethena's strategic expansion into Solana's ecosystem, complementing its existing collaborations with Anchorage Digital and blockchain platforms like SUI. Ethena's synthetic stablecoins, which combine compliance with decentralized asset backing, are designed to minimize volatility while preserving dollar value. The firm has secured funding from Binance Labs, Franklin Templeton, and other institutional investors, underscoring confidence in its stablecoin modelEthena and Jupiter Join Forces to Launch JupUSD on Solana^[3].

Looking ahead, Jupiter's co-founder Sion Ong highlighted that stablecoins are poised to grow 10–100 times in on-chain utility, with JupUSD serving as a key catalyst for Solana's DeFi adoptionEthena and Jupiter Join Forces to Launch JupUSD on Solana^[3]. The token's integration into Jupiter's product suite, including the Jupiter Lend platform and Meteora DEX, is expected to strengthen the DEX's role as a foundational hub for decentralized finance on Solana.