Ethena is joining forces with Jupiter Exchange to launch Solana-based stablecoin JupUSD. The collaboration introduces a new native asset to the Solana ecosystem, marking a major move to expand decentralized finance opportunities and strengthen stablecoin use across Jupiter’s growing platform.

Ethena and Jupiter to Launch Native-Stablecoin Expanding Ethena’s Portfolio

Ethena Labs, the protocol behind decentralized synthetic dollar USDe, is partnering with decentralized exchange Jupiter to launch JupUSD, a native Solana-based stablecoin.

The partnership marks a significant expansion for Ethena on the Solana network, and it could help unlock Solana’s growing stablecoin market, which remains smaller compared to Ethereum’s circulating stablecoin supply at about 5.09%, according to data from DeFiLiama.

As revealed by a representative, JupUSD will be “100% backed by USDtb,” a USD-pegged stablecoin that primarily invests in BlackRock’s tokenized USD Institutional Digital Liquidity Fund (BUIDL). However, the representative added that there is “the potential to migrate to USDe backing over time.”

USDe, valued at $14.8 billion, is a tokenized stablecoin that maintains its peg to the US dollar through delta-hedging strategies involving staked crypto assets and short derivatives. Data from The Block shows it has surpassed Sky’s USDS and MakerDAO’s DAI to become the largest decentralized stablecoin in circulation.

This development reflects the growing confidence in decentralized assets and the continued evolution of stablecoin use in DeFi. Jupiter co-founder Siong Ong has said that stablecoins have proven their value in the on-chain economy and that the sector is only beginning to realize its full potential. He described the launch of JupUSD as a major step that will create more value across the Jupiter ecosystem and strengthen the company’s position in decentralized finance.

Integration Across the Jupiter Ecosystem

The new token is scheduled to launch in the fourth quarter, with Jupiter planning to progressively convert $750 million of USDC from its Liquidity Provider Pool into JupUSD, which will be integrated across the Jupiter ecosystem.

This integration underscores Jupiter’s growing attention on expanding its utility within the Solana network and strengthening its DeFi infrastructure. Ethena Labs on X has revealed that JupUSD will serve multiple purposes across the Jupiter ecosystem. It will act as collateral on Jupiter’s decentralized perpetuals exchange, function as a main stablecoin for trading interfaces and the Jup Mobile app, operate as a liquidity hub on Jupiter Lend, pair with assets on Meteora, one of Jupiter’s main DEX partners, and be integrated into all upcoming products within the Jupiter network.

Ethena previously partnered with Anchorage Digital to mint its USDtb stablecoin in the United States, making it the first stablecoin to be issued under GENIUS Act standards.

The series of collaborations reflects Ethena’s move toward deeper integration with major blockchain ecosystems.

Jupiter, which started as a decentralized exchange aggregator on Solana, has expanded into a broader platform that now includes artificial intelligence and lending products. The partnership with Ethena positions JupUSD for stronger adoption across the expanding Jupiter ecosystem.