Jupiter and Ethena Labs are launching JupUSD, a native Solana stablecoin set to debut in Q4 2025

Jupiter, a leading decentralized finance (DeFi) aggregator on Solana, is teaming up with Ethena Labs, the issuer of the world’s largest decentralized synthetic dollar, USDe, to launch JupUSD, a native Solana-based stablecoin designed to boost on-chain liquidity and expand Solana’s stablecoin ecosystem.

The project is slated to debut in the fourth quarter of 2025. As part of the rollout, Jupiter plans to progressively convert around $750 million worth of USDC from its Liquidity Provider Pool into JupUSD, effectively seeding initial liquidity for the new asset.

“Stablecoins have proven true product-market fit on-chain,” said Jupiter co-founder Siong Ong. “We believe the sector will 10–100x from here. JupUSD represents a major step forward for Jupiter to enter the game, create more value across the ecosystem, and ensure Jupiter remains at the center of all things DeFi.”

The native Solana dollar will be backed by tokenized assets

At launch, JupUSD will be 100% backed by USDtb, a USD-pegged stablecoin introduced by Ethena earlier this year in partnership with federally chartered crypto bank Anchorage Digital. USDtb primarily invests in BlackRock’s tokenized USD Institutional Digital Liquidity Fund (BUIDL), giving it a degree of real-world asset collateralization uncommon among decentralized stablecoins.

According to a Jupiter representative, there remains potential to migrate to USDe backing over time. USDe, Ethena’s $14.8 billion delta-hedged synthetic dollar, uses a combination of staked crypto assets and short derivatives to maintain its peg to the U.S. dollar. This approach has made it the largest decentralized stablecoin by supply. 

However, it still comes third after USDT and USDC in the stablecoin market, although the two leaders are powered by centralized issuers.

Jupiter on the other hand, aims to embed JupUSD across its entire product suite, and this includes collateral for Jupiter’s decentralized perpetual exchange, a base stablecoin for its trading interface and mobile app, liquidity hub for Jupiter Lend, a pairing token on Meteora, one of its major decentralized exchange partners and a utility token within all upcoming Jupiter products.

Ethena’s whitelabel stablecoin strategy is expanding

For Ethena Labs, JupUSD is the latest addition to its whitelabel stablecoin program, which lets DeFi platforms and blockchains issue their own branded stable assets using Ethena’s infrastructure. 

The program already powers stablecoins for Sui Network and MegaETH, among others, and aligns with Ethena’s ambition to provide modular, institution-grade stablecoin issuance across ecosystems.

“JupUSD marks the latest addition to Ethena’s Whitelabel product lineup,” said Ethena founder Guy Young, noting that Solana’s fast-growing DeFi environment made it a natural next step for expansion.

Solana’s stablecoin market remains relatively small compared to Ethereum’s, as it reportedly accounts for just 9.27% of Ethereum’s circulating stablecoin supply. Analysts suggest JupUSD could help narrow that gap, especially if Jupiter successfully converts its USDC reserves and secures more ecosystem adoption.

What is JupUSD’s regulatory outlook and growth potential?

Unlike algorithmic or overcollateralized stablecoins of earlier DeFi cycles, JupUSD’s dual-backing model — first with USDtb and later potentially USDe — is anchored in tokenized real-world assets, giving it green checks in both transparency and a compliance edge.

Ethena’s growing roster of backers, including Binance Labs, Dragonfly, Fidelity, Franklin Templeton, and most recently M2 Holdings, which invested $20 million in its ENA governance token, is evidence of the institutional support for its model.

With Solana emerging as one of the most active DeFi ecosystems and stablecoins proving their dominance in transaction volume, a native Solana stablecoin backed by credible collateral could help Jupiter solidify its status as a liquidity hub and position Ethena as a foundational layer in the next generation of stablecoin infrastructure.

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