Key Takeaways:
- Jupiter to release JupUSD stablecoin in mid-Q4 2025, with USDtb of Ethena Labs and subsequent USDe.
- Intention to swap up its liquidity pools of the current amounts of stablecoins of approximately $750 million to JupUSD as the primary collateral.
- JupUSD will be highly integrated into Jupiter trading, lending and perpetual markets, which are based on Solana.
Jupiter, the leading decentralised trading aggregator on Solana, is getting into the stablecoin market with JupUSD, a new dollar-pegged digital asset, in collaboration with Ethena Labs. With the DeFi ecosystem on Solana steadily expanding, this step further places Jupiter in a position to gain control of the liquidity and increased yield production on its product line-up.
JupUSD – A Native Stablecoin for the Solana DeFi Stack
JupUSD is not another stable currency, it is purpose-built to fit within the Solana ecosystem, and it is meant to be the foundation of the growing DeFi infrastructure of Jupiter. In comparison with the third-party stablecoins deployed currently, JupUSD will be focused on:
- Jupiter Perpetuals as primary collateral.
- Jupiter Lend as a liquidity asset.
- Jupiter Swap and Pro platforms as a base trading pair.
Firstly, JupUSD will be completely supported by USDtb, which is a tokenized by short-term U.S. Treasury assets, and offers transparency and low-risk support. As time goes by, the USDe of Ethena that is a synthetic dollar that is yield-optimised will also be included in the collateral mix to increase returns and platform stability.
The $750M Shift: Replacements of the Current Stablecoins
Among the most hostile aspects of the rollout is the ambition of Jupiter, which is to gradually eliminate as many as $750 million in existing stablecoins in its liquidity pools. These comprise leading assets such as USDC and USDT that now represent a majority of the liquidity in Solana-based DeFi platforms of stablecoins.
This change will make JupUSD the default collateral asset in the Jupiter ecosystem, allowing the platform to have a closer grip over:
- Liquidity incentives
- Yield mechanics
- Interoperability of assets.
This change is reflected more broadly in the trend of DeFi platforms issuing native stablecoins to internalize value and eliminate the reliance of external assets.
Read More: Coinbase Lists 2 Local Currency Stablecoins: 1st USD-Free AUDD & XSGD Now Onchain
Ethena’s Stablecoin-as-a-Service Infrastructure
JupUSD is being built on the Stablecoin-as-a-Service (SaaS) platform provided by Ethena Labs so that its partners can create branded, asset-backed stablecoins based on a smart contract infrastructure audited by Ethena.
This plug-and-play system considerably shortens the time to development and the risk elements that are traditionally related to the issuance of stablecoins. Ethena already delivers SaaS stack to power a number of high-profile stablecoins such as:
- suiUSDe and USDi in the Sui blockchain.
- Other future white-label stablecoins of regional governments and fintechs.
Under this structure, JupUSD enjoys the following:
- Collateral of institutional quality (USDtb based on a BlackRock fund called BUIDL fund)
- Smart contracts in Solana.
- Pathways of continuous auditing and upgrades.
The minting and redeem contracts on Solana to convert JupUSD are under audit, and are likely to be deployed to mainnet by mid-Q4 2025.
The Trend to Grow: White-Label Stablecoins on the Increase
This action by Jupiter is not a one-man affair. DefiLlama states that the total capitalization of the market of stablecoins has already reached over $300 billion, and the white-label solutions are picking up steam.
Other players are also coming into the space beyond Jupiter:
- North Dakota is considering a Fiserv and state-sponsored Roughrider Coin.
- Stripe and Bastion are building embedded fintech stablecoin payment systems.
- SUI Foundation is releasing an Ethereum-based native stablecoin under the Ethena infrastructure.
These changes represent a significant change in the utility of stablecoins, as generic trading instruments to branded financial infrastructure. JupUSD or more appropriately is a perfect fit in this story where it provides Jupiter all the stack it needs and future proofs its DeFi product ecosystem.
JupUSD will be one of the most integrated stablecoins on Solana and will be backed in reality, used by the entire platform, and allow collateralization plans to be customized. In the case of Jupiter, it is a significant step toward becoming a vertically integrated DeFi hub to decrease the dependence on third-party stablecoins and enhance the management of the liquidity dynamics.
With success, JupUSD would be a precedent of how DeFi systems on other chains would proceed to issue stablecoins in the future, not as an asset, but as a consolidation mechanism that the ecosystem.
Read More: Sui Blockchain to Release Two Native Stablecoins with Ethena Labs Valued at $30B
