Ethena Labs Teams Up with Jupiter to Introduce JupUSD Stablecoin on Solana

Ethena Labs announced its partnership with Jupiter Exchange to create JupUSD, a new stablecoin designed to run Solana’s largest decentralized trading platform.

The token will be the main stablecoin for all of Jupiter’s products, using Ethena’s easy-to-use stablecoin system.

According to Ethena, JupUSD will replace around $750 million in stablecoins in the Jupiter Liquidity Pool (JLP) and will become the primary lending asset for Jupiter Lend, thereby increasing its impact across Solana’s DeFi network.

Although JupUSD will be backed by USDTb, a token primarily supported by BlackRock’s BUIDL fund, Ethena plans to add its own synthetic dollar, USDe, later on, to diversify the backing.

JupUSD Launch Drives Growth in Custom Stablecoins

Ethena is growing its stablecoin program by launching JupUSD, a new project that enables blockchain platforms to create custom stablecoins with institutional-grade backing.

The system, being the latest offering by Ethena in its stablecoin-as-a-service lineup, will allow partner projects to use stablecoins directly in their platform without relying on third-party issuers. 

The partnership between Ethena and Jupiter reflects a broader trend towards blockchain-based stablecoins. Similarly, Ripple is expanding its XRPL DeFi plans to include tokenized assets and stablecoins, indicating rising institutional interest in this area.

Ethena Targets $50B Stablecoin Supply 

Ethena founder Guy Swann revealed the company’s stablecoin system currently accounts for 5% of the global market and is expected to surpass $50 billion in total supply within the next two years as part of the firm’s plan to grow aggressively.

At the same time, Jupiter’s representative highlighted the partnership’s goal of making DeFi easy for everyone to use around the world, describing the collaboration as two strong teams working together to advance the DeFi ecosystem.

He also noted the growing importance of stablecoins in global payments, with even the U.S Federal Reserve Governor Chris Waller supporting their use.