Solana News Today: Solana's JupUSD Aims to Challenge Ethereum's Stablecoin Domination

Ethena Labs and Jupiter, a leading decentralized exchange (DEX) on Solana, have announced the launch of JupUSD, a new stablecoin designed to enhance liquidity and utility within Solana's decentralized finance (DeFi) ecosystem. The stablecoin, scheduled for a Q4 2025 rollout, will initially be 100% collateralized by Ethena's USDtb, a token backed by tokenized U.S. Treasury assets from BlackRock's BUIDL fund. Over time, Ethena plans to transition JupUSD's backing to its synthetic stablecoin, USDe, which employs delta-hedging strategies to maintain its dollar peg. The initiative aims to convert $750 million of existing USDC liquidity into JupUSD, positioning it as a core asset for Jupiter's perpetuals exchange, lending pools, and trading interfaces.

JupUSD's integration into Jupiter's ecosystem is expected to expand the platform's role beyond aggregation by embedding stable liquidity across its DeFi offerings. The stablecoin will serve as collateral on Jupiter Perps, a liquidity asset in Jupiter Lend, and a trading pair on Meteora, with potential inclusion in upcoming products. This move aligns with Ethena's broader strategy to deploy compliant, yield-generating stablecoins across multiple blockchains. Ethena, which previously launched USDtb in partnership with Anchorage Digital, has raised strategic funding from entities like Binance Labs and Franklin Templeton, underscoring its focus on scalable digital dollar solutions.

The partnership reflects growing momentum for Solana's stablecoin market, which has seen a 146% surge in market capitalization in Q1 2025, reaching $12.5 billion. While Ethereum remains the dominant stablecoin platform with $122 billion in supply, Solana's transaction volume and efficiency have positioned it as a competitive alternative. JupUSD's launch aims to address Solana's smaller stablecoin presence compared to Ethereum by leveraging Ethena's infrastructure and Jupiter's $3.58 billion in total value locked (TVL) as of DeFiLlama data. The stablecoin's potential migration to USDe could further enhance yield opportunities, aligning with Ethena's model of combining decentralization with synthetic asset backing.

Analysts highlight that JupUSD's design mirrors Ethena's success with USDe, now the largest decentralized stablecoin with $14.8 billion in supply. USDe's peg is maintained through ETH collateral and short derivatives, a strategy that has outperformed DAI and other decentralized stablecoins. By extending this model to Solana, Ethena and Jupiter aim to close the gap between Solana and Ethereum in stablecoin volumes while reinforcing compliance and liquidity depth. Jupiter's smart contracts for JupUSD will undergo multiple audits prior to launch, ensuring security and transparency.

The initiative also underscores the rise of white-label stablecoin solutions, with Ethena's infrastructure enabling partners to issue branded stablecoins. For instance, SUI Group recently announced plans to launch suiUSDe and USDi on the Sui blockchain using Ethena's framework. Meanwhile, North Dakota's proposed Roughrider Coin, a U.S. dollar-backed stablecoin, highlights growing institutional interest in compliant digital assets. Ethena's collaboration with Jupiter represents a strategic expansion into Solana's DeFi sector, where low fees and high throughput make it an attractive platform for retail and institutional users.

Source: [1] Ethena and Jupiter Join Forces to Launch JupUSD on Solana (https://coincentral.com/ethena-and-jupiter-join-forces-to-launch-jupusd-on-solana/)

[2] Solana's Jupiter to Develop JupUSD Stablecoin With Backing From Ethena Labs (https://www.coindesk.com/web3/2025/10/08/solana-s-jupiter-to-develop-jupusd-stablecoin-with-backing-from-ethena-labs)

[3] Jupiter, Ethena Labs roll out new Solana-based stablecoin (https://cointelegraph.com/news/jupiter-ethena-labs-new-solana-stablecoin)