Solana News Today: Solana's JupUSD Targets Ethereum's Stablecoin Gap with Dual-Collateral Innovation

JupUSD, a Solana-based stablecoin developed by decentralized exchange aggregator Jupiter in partnership with Ethena Labs, is set to launch in mid-2025. The stablecoin will be initially 100% collateralized by Ethena's USDtb, a Treasury-backed stablecoin linked to BlackRock's BUIDL fund. Jupiter plans to convert approximately $750 million in USDC from its liquidity pools into JupUSD, positioning it as a core asset across its ecosystem, including perpetuals trading, lending markets, and swap platformsFrancisco Rodrigues, *CoinDesk*^[1]. The integration aims to enhance liquidity efficiency and reduce reliance on third-party stablecoins.

Ethena's white-label stablecoin infrastructure underpins JupUSD, leveraging USDtb's short-term Treasury collateral for immediate stability. Over time, the project may transition to Ethena's USDe, a delta-hedged synthetic dollar with a current market cap of $14.8 billion. This dual-collateral model combines transparency with yield optimization, distinguishing JupUSD from algorithmic or overcollateralized alternatives*Cryptopolitan*^[2]. Ethena founder Guy Young highlighted the partnership as a strategic expansion into Solana's DeFi ecosystem, aligning with the platform's ambition to provide modular, institution-grade stablecoin solutions*Stocktwits*^[3].

JupUSD will replace existing stablecoins in Jupiter's liquidity pools incrementally, ensuring minimal market disruption. The stablecoin will serve as collateral for Jupiter Perps, a base asset in Jupiter Lend, and a trading pair on Meteora and other partners. This phased approach aims to streamline on-chain USD operations while maintaining capital efficiency. Jupiter's total value locked (TVL) currently exceeds $3.58 billion, underscoring its dominance in Solana's DeFi landscape*Gate.com*^[4].

Analysts note that Solana's stablecoin market accounts for just 9.27% of Ethereum's circulating supply, leaving room for JupUSD to narrow the gap. The project's regulatory alignment with the GENIUS Act and institutional backing from entities like Binance Labs and Franklin Templeton further strengthen its compliance edge*Decrypt*^[5]. Ethena's existing partnerships with Sui Network and MegaETH demonstrate its scalable model, with JupUSD representing the latest iteration of its whitelabel strategy*Coinotag*^[6].

The launch timeline remains contingent on smart contract audits and regulatory clarity. Jupiter co-founder Siong Ong emphasized the project's potential to amplify on-chain liquidity, stating, "Stablecoins have proven true product-market fit on-chain. JupUSD represents a major step forward for Jupiter to enter the game and ensure it remains at the center of DeFi."*Cryptopolitan*^[7] Meanwhile, Ethena's expanding footprint-recently launching USDe access via UR Global's neobank platform-signals growing institutional confidence in its stablecoin infrastructure*Coincentral*^[8].