Ethena and Jupiter Forge Alliance to Launch Solana’s Native Stablecoin JupUSD
Ethena and Jupiter unveil JupUSD, Solana’s first native stablecoin, backed by BlackRock-linked collateral.
In a landmark collaboration that underscores the growing maturity of decentralized finance, Ethena Labs and Jupiter have announced the launch of JupUSD, the first Solana-native stablecoin designed to strengthen the network’s liquidity foundations and reduce dependence on bridged assets like USDC and USDT.
The new token, scheduled to go live in Q4 2025, represents a major cross-chain expansion for both projects. Ethena, best known for its synthetic dollar USDe, will extend its stablecoin infrastructure beyond Ethereum, while Jupiter—the leading decentralized exchange aggregator on Solana—will integrate JupUSD as the core settlement and liquidity asset across its suite of decentralized products, including Jupiter Liquidity Provider (JLP) pools, perpetual markets, and lending platforms.
Jupiter plans to transition up to $750 million worth of USDC from its liquidity pools into JupUSD, aiming to create a self-sustaining liquidity base for the Solana DeFi ecosystem. The stablecoin will be fully collateralized at launch by USDtb, an asset managed by Ethena Labs and backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which holds short-term U.S. Treasuries and cash equivalents.
Over time, Ethena intends to incorporate USDe, its yield-bearing synthetic dollar, as an additional collateral layer for JupUSD. Both minting and redemption functions will be handled through Solana smart contracts, ensuring transparency and programmability. The companies have confirmed that multiple independent audits will precede the mainnet rollout to guarantee robust security standards.
For Jupiter, JupUSD marks an evolution toward becoming a “DeFi super app”, integrating trading, lending, and stablecoin liquidity into a unified user experience. For Ethena, the partnership reinforces its position as a white-label stablecoin infrastructure provider, enabling third-party ecosystems to issue their own native assets built on Ethena’s technology.
“This partnership embodies our shared vision for a more efficient and decentralized Solana liquidity environment,” the teams stated in their joint release.
The move follows a surge of institutional confidence in Ethena. YZi Labs, the $10 billion family office of Binance founder Changpeng “CZ” Zhao, recently increased its stake in the company, further cementing Ethena’s growing credibility in DeFi. Meanwhile, USDe—Ethena’s flagship synthetic dollar—has soared to a $14 billion market capitalization, ranking as the third-largest stablecoin globally behind USDT and USDC.
Ethena’s growth model, which blends delta-neutral trading strategies with on-chain liquidity, continues to attract both retail and institutional investors seeking stability without centralization risks. After stepping back from the Hyperliquid USDH stablecoin initiative amid community pushback, Ethena has doubled down on developing its own ecosystem—anchored by partnerships like this one with Jupiter.
As the race for stablecoin dominance intensifies, JupUSD could emerge as a critical liquidity pillar for Solana, symbolizing a broader shift toward native, transparent, and institutionally backed digital assets.
