Solana News Today: JupUSD: Solana's DeFi Gets Cornerstone Asset

Jupiter and Ethena Labs have announced the launch of JupUSD, a Solana-based stablecoin designed to serve as a native dollar-pegged asset within Jupiter's ecosystem. Built on Ethena's Stablecoin-as-a-Service stack, JupUSD aims to replace approximately $750 million in stablecoins currently held in Jupiter's Liquidity Provider (JLP) pools, positioning it as a cornerstone asset for Jupiter Lend and other productsJupiter and Ethena Partner to Launch Solana-Based Stablecoin …^[1]. The stablecoin will initially be 100% collateralized by USDtb, with plans to integrate Ethena's yield-bearing stablecoin USDe as a secondary collateral asset to optimize returns and diversify backingJupiter and Ethena Partner to Launch Solana-Based Stablecoin …^[1]. Jupiter Exchange emphasized that the integration of JupUSD will enhance liquidity, stability, and unified on-chain settlement across its platform, including perpetual markets, lending, and trading. Mint-and-redeem contracts are under development and expected to launch in mid-Q4 2025, pending auditsJupiter and Ethena Partner to Launch Solana-Based Stablecoin …^[1].

The partnership marks a strategic expansion for Ethena, which recently partnered with UR Global to bring its USDe stablecoin to 45+ countries via a neobank platform. This program offers up to 5% APY on USDe holdings, zero off-ramp fees, and fiat conversions with Mastercard debit integrationJupiter and Ethena Partner to Launch Solana-Based Stablecoin …^[1]. Ethena founder Guy Young highlighted that JupUSD is part of the company's Whitelabel product suite, which has already supported collaborations with SUI and MegaETHJupiter To ‘Progressively Convert’ $750 Million USDC Into New …^[2]. The stablecoin will be integrated into Jupiter Perps and Jupiter Lend, where it will replace existing stablecoin reserves in liquidity pools and serve as the primary lending assetJupiter To ‘Progressively Convert’ $750 Million USDC Into New …^[2].

Market reactions to the partnership have been mixed. Ethena's native token, ENA, rose 2.3% in the past 24 hours, while Jupiter's JUP token edged up 0.5%Jupiter To ‘Progressively Convert’ $750 Million USDC Into New …^[2]. Despite short-term bearish sentiment on platforms like Stocktwits, analysts view JupUSD as a milestone for Solana's DeFi liquidity and Ethena's role in cross-chain infrastructureJupiter To ‘Progressively Convert’ $750 Million USDC Into New …^[2]. The launch aligns with broader trends in Solana's stablecoin ecosystem, which has seen supply surge to $15 billion, driven by regulatory clarity from the GENIUS Act and institutional adoption.

JupUSD's integration into Jupiter's ecosystem is expected to deepen Solana's DeFi infrastructure. Users will access the stablecoin across Jupiter Perps, Lend, Swap, Pro, and Mobile, creating a comprehensive stablecoin layer for the networkJupiter and Ethena Partner to Launch Solana-Based Stablecoin …^[1]. The move also reflects Ethena's growing influence in stablecoin innovation, following its prior launch of USDe on Solana in August 2024. By leveraging Ethena's technology, Jupiter aims to streamline on-chain transactions and reduce reliance on external stablecoins like USDCJupiter and Ethena Partner to Launch Solana-Based Stablecoin …^[1].

Analysts note that the partnership could further solidify Solana's position as a leading blockchain for stablecoin activity. With over $15 billion in stablecoin supply, Solana's growth rate now outpaces Ethereum and other major networks. The JupUSD launch, combined with recent network upgrades and ETF demand, signals increasing institutional confidence in Solana's scalability and efficiency. However, challenges remain, including liquidity concentration in USDC and regulatory uncertainties for newer stablecoinsSolana Stablecoin Supply Hits $15B as ETF Demand Accelerates^[4].