Jupiter Launches JupUSD, BlackRock-Backed Stablecoin in Solana Ecosystem

Jupiter Introduces JupUSD, a Stablecoin for the DeFi Ecosystem

Jupiter, a DeFi and trading platform based on Solana, has announced the launch of JupUSD, a stablecoin developed in partnership with Ethena Labs. This token is pegged to the dollar and is intended to serve as a settlement asset within Jupiter's DeFi infrastructure.

According to the announcement, 90% of JupUSD's reserves will initially be held in USDtb, a licensed stablecoin collateralized by BlackRock's tokenized money market fund shares. The remaining 10% will be retained in USDC as a liquidity buffer, with a secondary pool on Meteora.

JupUSD is issued as an SPL token, the standard token format for Solana, allowing its integration into applications based on this platform. The reserves are custodied by Porto through Anchorage Digital and can be verified on-chain.

Within Jupiter's lending product, JupUSD deposits generate a yield-bearing JupUSD token, which can continue to earn returns while being used for functionalities such as limit orders and dollar averaging. The company also plans to integrate JupUSD into its perpetuals platform, gradually transitioning from USDC collateral and liquidity balances.

Jupiter has specified that for institutions and market makers, JupUSD supports on-chain issuance and redemption against USDC through settlements in a single transaction on Solana. Ethena Labs will manage reserve operations, including coordinating custodians and rebalancing between support assets, utilizing segregated on-chain addresses and transparent capacity signals.

The native token of Jupiter, JUP, has seen an approximate 18% increase over the last week, according to CoinGecko data.