Solana News Today: JupUSD Aims to Bridge Solana's Stablecoin Liquidity Gap

Ethena Labs and Jupiter, a Solana-based decentralized exchange (DEX) aggregator, have announced the launch of JupUSD, a native stablecoin designed to deepen liquidity and expand DeFi functionalities on the Solana blockchain. The stablecoin, set for release in Q4 2025, will initially be fully collateralized by USDtb, a stablecoin backed by BlackRock's BUIDL fund, with potential future integration of Ethena's synthetic stablecoin USDe to enhance yield potentialEthena and Jupiter Join Forces to Launch JupUSD on Solana^[1]. This initiative marks a strategic expansion for Ethena into Solana's stablecoin ecosystem, aligning with its broader Stablecoin-as-a-Service modelEthena Labs, Jupiter Partner to Launch JupUSD Stablecoin on …^[4].

JupUSD will serve as a core asset across Jupiter's ecosystem, including its perpetual futures, lending markets, and spot trading platforms. The token aims to address Solana's relatively smaller stablecoin volume compared to Ethereum by providing a compliant, liquid, and scalable alternative. Jupiter's total value locked (TVL) currently stands at $3.58 billion, making it the leading protocol on SolanaSolana's Jupiter to Develop JupUSD Stablecoin With Backing^[2]. The stablecoin's integration is expected to strengthen Jupiter's role beyond aggregation, embedding stable liquidity into its DeFi offeringsEthena and Jupiter Join Forces to Launch JupUSD on Solana^[1].

Ethena's involvement in JupUSD underscores its commitment to expanding synthetic dollar solutions across multiple blockchains. The firm has previously launched USDtb in partnership with Anchorage Digital and maintains collaborations with platforms like SUI and MegaETH. JupUSD will inherit Ethena's delta-neutral strategies, which minimize volatility while preserving dollar value. The project also reflects Ethena's focus on chain-specific DeFi ecosystems, with JupUSD tailored to Solana's performance-oriented infrastructureEthena and Jupiter Join Forces to Launch JupUSD on Solana^[1]Ethena Labs, Jupiter Partner to Launch JupUSD Stablecoin on …^[4].

The launch of JupUSD follows the success of Ethena's USDe, now the largest decentralized stablecoin with over $14.8 billion in supply. USDe's growth, driven by ETH collateral and short derivatives, has positioned it as a benchmark for yield-bearing stablecoinsEthena and Jupiter Join Forces to Launch JupUSD on Solana^[1]. JupUSD's potential migration to USDe backing could further align it with Ethena's model of combining decentralization and synthetic asset backing. Analysts note that the transition from USDC to JupUSD could accelerate adoption, given Jupiter's existing TVL and Solana's transaction efficiencyEthena and Jupiter Join Forces to Launch JupUSD on Solana^[1].

This partnership highlights a broader trend in DeFi toward self-issued stablecoins to retain liquidity and fee revenue internally. Similar initiatives include Aave's GHO and Curve's crvUSD. With the GENIUS Act providing regulatory clarity for stablecoins in the U.S., institutional and cross-chain adoption is expected to rise. Ethena and Jupiter's collaboration aims to bridge compliant design, liquidity depth, and on-chain utility, positioning JupUSD as a cornerstone asset for Solana's DeFi sectorEthena Expands Whitelabel Portfolio with JupUSD^[5].