Jupiter Launches Stablecoin JupUSD in Partnership with Ethena

Jupiter, a prominent decentralized exchange aggregator and DeFi platform on Solana, is set to launch its own stablecoin, JupUSD, alongside the stablecoin issuer Ethena.

Expected to debut in Q4, JupUSD will initially be fully collateralized by Ethena’s USDtb, a product backed by BlackRock’s BUIDL, a tokenized fund representing investments in short-term U.S. treasuries. Later, Ethena’s flagship stablecoin USDe—currently the third largest stablecoin in the market after Tether’s USDT and Circle’s USDC—will also serve as collateral.

“Jupiter aims to serve every person on this planet using DeFi rails,” stated Jupiter COO Kash Dhanda in a release video. “Stablecoins are a critical component of that.”

DeFi, or decentralized finance, represents a multi-billion-dollar sector comprising financial applications enabling users to transact directly on blockchain networks without intermediaries. Stablecoins act as digital dollar equivalents, facilitating crypto traders in accessing and exiting markets where traditional dollars are limited, particularly within DeFi environments.

Jupiter plans to integrate JupUSD across its DeFi offerings, including as collateral for perpetual futures trading, liquidity in its lending protocol, and trading via its swap products on both desktop and mobile platforms. Jupiter remains the largest DEX aggregator on Solana, reaching nearly $20 billion in trading volume over the past 30 days and generating $1.2 million in revenue in the last 24 hours, according to DefiLlama.

Contracts for the minting and issuance of JupUSD are currently under development and will be prepared for audits ahead of the launch.

“Working with winners across the entire space is our goal,” commented Ethena founder Guy Young in a promotional video. “Jupiter was an obvious partner for our first stablecoin collaboration within Solana.”

Ethena’s primary stablecoin products, USDe and USDtb, together account for just over 5% of the total stablecoin market cap, which has surged past $303 billion, a significant increase from $173 billion last year.

This year, stablecoins achieved a major milestone with the GENIUS Act, introducing a regulatory framework for their trading and issuance. In February, experts indicated that this legislation could spark the creation of thousands of stablecoin offerings from major firms.

The uptick in stablecoin products is evident, with recent launches from crypto wallets like MetaMask and Phantom. Major corporations such as Amazon, Walmart, and Expedia have also considered entering the stablecoin market, as reported by the Wall Street Journal in June.

Representatives from Jupiter and Ethena have not yet responded to Decrypt’s request for comment.