Ethena Partners with Jupiter to Launch JupUSD for Solana DeFi

• JupUSD to replace $750M in stablecoins in Solana’s DeFi ecosystem.
• Ethena targets $50B stablecoin supply in next two years.
• JupUSD backed by USDTb and plans to diversify with USDe.

Ethena Labs has announced its partnership with Jupiter Exchange to create JupUSD, a new native stablecoin designed to support Jupiter’s growing financial products. Built on Ethena’s Stablecoin-as-a-Service framework, JupUSD is expected to replace existing stablecoins and integrate deeply within the Solana-based DeFi landscape.

Ethena Labs revealed that JupUSD will play a central role within Jupiter’s ecosystem, starting with its integration into the Jupiter Liquidity Pool (JLP). The new stablecoin is set to replace approximately $750 million of existing stablecoins used within the JLP, thereby anchoring Jupiter’s DeFi offerings. The token will also serve as the key lending asset for Jupiter Lend, broadening its use case across the DeFi space on the Solana blockchain.

The partnership between Ethena and Jupiter comes at a time when the decentralized finance sector is expanding rapidly. JupUSD, developed as part of Ethena’s Stablecoin-as-a-Service initiative, is designed to provide institutional-grade stablecoin solutions.

Ethena’s system enables blockchain projects to create custom stablecoins, thereby avoiding reliance on third-party issuers. Jupiter’s move to integrate this model is an important step in aligning with the increasing demand for native stablecoins in decentralized ecosystems.

Backing and Development of JupUSD

Initially, JupUSD will be backed by USDTb, a token supported by BlackRock’s BUIDL fund, ensuring its initial stability. However, Ethena Labs has plans to diversify its backing over time by introducing its own synthetic dollar asset, USDe, into the mix. This shift will offer further liquidity and resilience to the stablecoin, while also reflecting Ethena’s broader vision of building a multi-backed stablecoin ecosystem.

Ethena has confirmed that JupUSD is still in development and expects a launch in the coming months. As the stablecoin replaces existing assets within Jupiter’s financial products, its reach is set to expand across the Solana DeFi ecosystem.

Ethena’s Ambitious Goals for Stablecoin Supply

Ethena’s collaboration with Jupiter points to a larger plan within the stablecoin sector. The company is currently aiming to capture 5% of the global stablecoin market. In a recent video, Ethena founder Guy Swann discussed the company’s growth trajectory, revealing that the stablecoin ecosystem now represents 5% of the market.

Over the next two years, Ethena targets an ambitious $50 billion in stablecoin supply, a major increase from its current standing. This goal highlights the company’s commitment to expanding its presence in the rapidly evolving DeFi and stablecoin markets.