Ethena Labs, the backers of the largest decentralized synthetic dollar, USDe, is partnering with Jupiter to launch JupUSD, a native Solana-based stablecoin, The Block has learned exclusively.
The token is slated to launch in the fourth quarter. As part of the arrangement, Jupiter plans to “progressively convert” about $750 million of USDC from its Liquidity Provider Pool into JupUSD, a representative said.
JupUSD will join Ethena’s expanding selection of dollar-pegged offerings. In July, for instance, the project partnered with federally chartered crypto bank Anchorage Digital to mint its USDtb stablecoin in the U.S., making it the first stablecoin issued under GENIUS Act standards.
“JupUSD marks the latest addition to Ethena’s Whitelabel product lineup, which is already powering stablecoin partnerships with industry leaders such as SUI and MegaETH,” Guy Young, founder of Ethena, said in a statement.
The move also marks a significant expansion for Ethena on Solana, and could potentially unlock Solana’s burgeoning stablecoin market, which is currently dwarfed by Ethereum’s circulating stablecoin supply at a ratio of about 9.27%, according to The Block’s data. Ethena has previously launched USDe on Solana.
What is JupUSD?
JupUSD will be integrated across the Jupiter ecosystem — particularly in five main areas.
“As part of the integration, JupUSD will be useable as (1) collateral in Jupiter”s decentralized perpetuals exchange; (2) a primary stablecoin for our trading interfaces and Jup Mobile; (3) a major liquidity hub on Jupiter Lend; (4) a liquidity pairing token on Meteora, a key DEX partner of Jupiter; and (5) all of the upcoming new products within the Jupiter ecosystem,” the representative said.
Jupiter, initially focused on decentralized exchange aggregation on Solana, has grown to become something of a superapp, including moves in the AI and lending verticals.
“Stablecoins have proven true product market fit onchain, and we believe the sector will 10-100x from here,” Jupiter co-founder Siong Ong said. “JupUSD represents a major step forward for Jupiter to enter the game, create more value across the ecosystem, and ensure Jupiter remains at the center of all things DeFi.”
At launch, JupUSD will be “100% backed by USDtb,” a USD-pegged stablecoin launched in 2024 that primarily invests in BlackRock’s tokenized USD Institutional Digital Liquidity Fund (BUIDL). However, there exists”the potential to migrate to USDe backing over time,” the rep said.
USDe is a $14.8 billion tokenized asset that uses delta-hedging strategies with staked crypto assets like ETH and short derivatives positions to maintain its peg to the greenback. The asset has overtaken Sky’s (formerly MakerDAO) USDS and DAI tokens as the largest decentralized stablecoin by supply, according to The Block’s data.
USDT and USDC, the two largest stablecoins maintained by centralized issuers Tether and Circle, have market caps of $177 billion and $74 billion, respectively.
In September, M2 Capital, the proprietary investment arm of UAE digital asset conglomerate M2 Holdings, joined Ethena Labs’ list of existing backers — including Binance Labs, Bybit, Dragonfly, Fidelity, and Franklin Templeton, among others — through a $20 million strategic investment in Ethena’s ENA governance token.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
