Stablecoin

Jupiter

JupUSD

Ethena

<article> 
 <h2 id="what-is-jupusd-and-how-is-it-structured">What Is JupUSD and How Is It Structured?</h2> Jupiter has launched JupUSD, a dollar-pegged stablecoin issued natively on Solana and developed in partnership with Ethena Labs. The token is designed to function as a core settlement and collateral asset across Jupiter’s trading, lending, and derivatives products, rather than as a general-purpose stablecoin competing for broad circulation. According to Jupiter, 90% of JupUSD’s reserves will initially be held in USDtb, a licensed stablecoin backed by shares of BUIDL, BlackRock’s tokenized money-market fund. The remaining 10% is allocated to USDC as a liquidity buffer, with a secondary pool deployed on Meteora to support market depth and redemptions. JupUSD is issued as an SPL token, Solana’s native token standard, allowing it to plug directly into Solana-based applications without wrappers or bridges. Jupiter said reserves are custodied by Porto through Anchorage Digital and can be verified onchain, with Ethena Labs handling reserve operations and rebalancing between backing assets. 
 <h3 id="investor-takeaway">Investor Takeaway</h3> 
 <div style="background: #f9f9f9; border-left: 4px solid #ff9900; padding: 12px; margin: 16px 0;">
  JupUSD is not chasing broad retail adoption. It is built to anchor liquidity, collateral, and settlement inside Jupiter’s own ecosystem, backed by tokenized money-market assets rather than only cash equivalents.
 </div> 
 <h2 id="why-is-jupiter-introducing-its-own-stablecoin">Why Is Jupiter Introducing Its Own Stablecoin?</h2> The launch reflects a broader shift within DeFi platforms toward owning their settlement layer instead of relying entirely on third-party stablecoins. While USDC and USDT still dominate global volumes, protocols increasingly want tighter control over liquidity, risk management, and product design. Within Jupiter’s lending product, deposits of JupUSD mint a yield-bearing version of the token. That asset continues to accrue returns while remaining usable across trading features such as limit orders and dollar-cost averaging. Jupiter also plans to integrate JupUSD into its <a title="Bitnomial launches digital asset clearinghouse, BNCH" href="https://financefeeds.com/bitnomial-launches-digital-asset-clearinghouse-bnch/" data-wpil-monitor-id="16896" data-wpel-link="internal">perpetual futures platform</a>, gradually replacing USDC as collateral and as the base asset in liquidity pools. For institutional users and market makers, JupUSD supports direct onchain minting and redemption against USDC through single-transaction settlement on Solana. That structure reduces operational steps and aligns with the needs of high-frequency participants who require predictable liquidity and fast settlement. Ethena Labs will manage reserve coordination using segregated onchain addresses and capacity signals designed to show how much JupUSD can be minted or redeemed at any time. Jupiter said this approach is meant to improve transparency and avoid hidden leverage inside the backing structure. 
 <h2 id="how-does-jupusd-fit-into-the-stablecoin-market">How Does JupUSD Fit Into the Stablecoin Market?</h2> The stablecoin market, now worth roughly $308 billion, remains concentrated in USDT and USDC. But 2025 has seen a steady rise in application-specific stablecoins tied to individual platforms, wallets, and financial products. These tokens are not built to replace existing stablecoins at the system level, but to optimize activity within defined ecosystems. Recent examples span both crypto-native and traditional finance players. MetaMask announced a dollar-denominated stablecoin intended for use inside its wallet and the Linea ecosystem. Hyperliquid introduced USDH as a native settlement asset for its <a title="Cathie Wood Says Hyperliquid Echoes Solana’s Early Days" href="https://financefeeds.com/cathie-wood-says-hyperliquid-echoes-solanas-early-days/" data-wpil-monitor-id="16895" data-wpel-link="internal">perpetual futures exchange</a>, backed by cash and Treasury equivalents. Klarna launched a dollar-pegged token on the Tempo blockchain for <a title="China May Launch First Yuan-Pegged Stablecoin Amid Global Push" href="https://financefeeds.com/china-may-launch-first-yuan-pegged-stablecoin-amid-global-push/" data-wpil-monitor-id="16894" data-wpel-link="internal">internal payment flows</a>, while SoFi rolled out SoFiUSD to support low-cost settlement for fintech and enterprise clients. JupUSD fits this pattern closely. Its design prioritizes capital efficiency, internal liquidity reuse, and product integration over wide circulation. By tying reserves to tokenized money-market assets, Jupiter is also leaning into the convergence between DeFi and tokenized traditional finance rather than relying solely on bank deposits or short-term bills. 
 <h3 id="investor-takeaway">Investor Takeaway</h3> 
 <div style="background: #f9f9f9; border-left: 4px solid #ff9900; padding: 12px; margin: 16px 0;">
  Application-specific stablecoins are fragmenting the market. Platforms with deep user activity may prefer owning their dollar layer rather than depending on shared stablecoin liquidity.
 </div> 
 <h2 id="what-does-this-signal-for-solana-and-defi">What Does This Signal for Solana and DeFi?</h2> JupUSD’s launch underscores Solana’s growing role as a base layer for high-throughput DeFi products that want tightly integrated settlement assets. By issuing the stablecoin directly as an SPL token, Jupiter avoids cross-chain complexity and keeps all activity within Solana’s execution environment. The move also reflects rising confidence in <a title="Skyline Digital makes TradFi accessible on Web3" href="https://financefeeds.com/skyline-digital-makes-tradfi-accessible-on-web3/" data-wpil-monitor-id="16897" data-wpel-link="internal">tokenized real-world assets</a> as stablecoin backing. Using exposure to a tokenized money-market fund shifts part of the reserve model closer to <a title="Coinbase Prime taps FlexTrade to expand liquidity distribution" href="https://financefeeds.com/coinbase-prime-taps-flextrade-to-expand-liquidity-distribution/" data-wpil-monitor-id="16898" data-wpel-link="internal">traditional asset management</a>, while still retaining onchain verification and programmability. Jupiter’s native token, JUP, has risen roughly 18% over the past week, according to CoinGecko data, though the longer-term impact will depend on how widely JupUSD is adopted across Jupiter’s products and whether liquidity migrates away from USDC over time. 
</article>

Jupiter Introduces a Stablecoin Backed by BlackRock Tokenized Fund

Table of Contents

FinanceFeeds

Other articles published on Jan 7, 2026

Ethereum Price Drops 4% After Strong Rally: Here are Possible Scenarios

BNB Chain's opBNB Completes Fourier Hard Fork Upgrade

Microsoft Expands Stake in OpenAI with New Agreement

Brazil’s FinTech PicPay Files for a U.S. IPO What It Signals for Markets

Crypto News: Why the White Whale Vs. MEXC Dispute Is Back in Focus Again

Dogecoin Price Could Skyrocket—Whales Load Up 220M Tokens Before Breakout

Join our free newsletter for daily crypto updates!