Solana News Today: JupUSD Aims to Bridge Solana's DeFi Liquidity Gap vs. Ethereum

JupUSD, a Solana-native stablecoin developed by Ethena Labs and Jupiter, is set to debut in Q4 2025, marking a strategic expansion into Solana's decentralized finance (DeFi) ecosystem. The stablecoin will initially be fully collateralized by USDtb, a tokenized-asset stablecoin managed by Ethena and backed by BlackRock's USD Institutional Digital Liquidity Fund (BUIDL). Over time, JupUSD may transition to Ethena's USDe, a yield-bearing synthetic dollar, aligning with the firm's broader stablecoin infrastructure model. Jupiter plans to convert $750 million in USDC from its liquidity pools into JupUSD, establishing a foundational liquidity base for the asset .

The partnership aims to enhance Jupiter's role as a centralized hub for Solana's DeFi activities. JupUSD will serve as a core asset across Jupiter's product suite, including perpetuals trading, lending platforms, and liquidity pools. It will also pair with liquidity on Meteora, a decentralized exchange partner, and integrate into Jupiter's upcoming product releases. By embedding JupUSD into its ecosystem, Jupiter seeks to reduce reliance on bridged stablecoins like USDC and USDT while deepening on-chain liquidity .

Ethena's entry into Solana's stablecoin market underscores its ambition to provide compliant, scalable stablecoin solutions. The firm previously launched USDtb in collaboration with Anchorage Digital, the first GENIUS Act-compliant stablecoin, and maintains a $14.8 billion supply of USDe, a decentralized stablecoin backed by delta-hedging strategies. JupUSD's launch expands Ethena's "whitelabel" stablecoin offerings, enabling ecosystems like Sui Network and MegaETH to issue branded stablecoins using Ethena's infrastructure .

The stablecoin's development reflects growing institutional confidence in Ethena. The company recently secured investments from Binance Labs, Dragonfly, and Franklin Templeton, with its governance token ENA valued at $20 million following a recent funding round. JupUSD's collateralization model, anchored in tokenized real-world assets, positions it to navigate regulatory scrutiny more effectively than algorithmic or overcollateralized alternatives. Ethena CEO Guy Young emphasized the strategic alignment with Jupiter's goal to strengthen its DeFi product suite and capture a larger share of Solana's expanding market .

Market dynamics further support JupUSD's potential. The stablecoin market reached a record $313.6 billion in total capitalization as of October 2025, with Ethena's USDe accounting for 5% of the sector. Solana's stablecoin volume lags behind Ethereum's, representing just 9.27% of its circulating supply. JupUSD aims to bridge this gap by leveraging Jupiter's $3.58 billion total value locked (TVL) and Solana's high-speed infrastructure. The project's success could accelerate Solana's adoption in DeFi, where stablecoins dominate transaction volumes .