JUP Secures $35M Strategic Investment to Accelerate Onchain Financial Infrastructure

Jupiter, a Solana-based decentralized exchange aggregator, secured a $35 million investment from ParaFi Capital, its first external funding after years of self-funding.

The investment was settled entirely in JupUSD, Jupiter's stablecoin, nearly doubling its circulating supply.

ParaFi Capital, managing approximately $1.4 billion in assets, has a strong presence in the Solana ecosystem.

Jupiter, a decentralized exchange (DEX) aggregator on the Solana blockchain, has received its first external funding round in the form of a $35 million investment from ParaFi Capital. This strategic move underscores Jupiter's growing importance in the Solana ecosystem, particularly as it continues to process over 90% of Solana aggregator volume.

The investment is notable for being settled entirely in JupUSD, a stablecoin launched in January 2026. JupUSD is backed by USDtb, a stablecoin collateralized by BlackRock's BUIDL tokenized treasury fund. The investment nearly doubled the stablecoin's circulating supply and included structured lockups and warrants to align long-term incentives between Jupiter and ParaFi.

This development highlights Jupiter's expanding role in on-chain finance. The firm plans to use the investment to accelerate development in prediction markets, lending, and stablecoins. ParaFi Capital, which has previously invested in projects like Sol Strategies, Kamino, and Metaplex, is known for its deep involvement in the Solana ecosystem.

What are the implications of Jupiter's first external funding round?

The $35 million investment represents a significant milestone for Jupiter, marking its transition from a bootstrap-growth model to a capital-backed strategy. This funding will support the development of on-chain financial infrastructure, including integrating Polymarket prediction markets into Jupiter's platform. The move is expected to reduce user friction and enhance Solana's position in decentralized finance.

Jupiter also plans to expand its DeFi capabilities by launching Jupiter Global, an on-chain payment system that allows zero-fee transactions and supports real-world use cases like fiat remittances and credit card payments. This aligns with broader trends in the blockchain industry, where platforms are increasingly bridging traditional finance with on-chain mechanisms.

What is the role of JupUSD in this investment?

JupUSD plays a central role in Jupiter's strategy. The stablecoin was developed in partnership with Ethena Labs and is initially collateralized by USDtb. The $35 million investment nearly doubled JupUSD's circulating supply, highlighting its growing utility in large transactions and institutional use.

By settling the investment in JupUSD, Jupiter is reinforcing the stablecoin's use as a medium for significant on-chain transactions. This approach aligns with Jupiter's broader vision of building a robust on-chain financial ecosystem.

What does this mean for Solana's DeFi landscape?

Jupiter's expansion into on-chain financial tools signals a broader maturation of the Solana DeFi ecosystem. With over $1 trillion in cumulative trading volume and processing nearly $20 billion in monthly trading volume, Jupiter has positioned itself as a key player in the space.

The investment from ParaFi Capital also reflects growing institutional interest in Solana-based projects. ParaFi Capital has previously invested in Sol Strategies, Kamino, and Metaplex, indicating a strategic focus on Solana's infrastructure and decentralized finance.

The integration of Polymarket into Jupiter's platform is a key example of how the platform is expanding beyond simple swaps and liquidity aggregation to include more complex on-chain financial instruments. This development is expected to attract a broader user base and increase the utility of Solana's DeFi tools.