Jupiter, the DeFi aggregator on Solana, will build JupUSD as a native stablecoin set to launch in Q4 2025. Ethena Labs will provide the first backing via its USDtb token. And potentially redirecting significant liquidity within Solana. The initiative could affect lending protocols and draw institutional investors by placing a stable asset at the core of Jupiter’s stack.
JupUSD is framed as a yield-bearing stablecoin meant to anchor Jupiter’s DeFi stack on Solana’s fast throughput and low fees.. The coin will start with USDtb, a fiat-backed token whose end collateral is cash and U.S. Treasury bonds held via BlackRock’s BUIDL fund.
Jupiter plans to swap about $750 million of USDC into JupUSD to act as a liquidity anchor. The swap aims to lift demand in lending products and increase usage of the JUP token, positioning JupUSD at the center of ecosystem flows.
Ethena will lend its “Stablecoin-as-a-Service” platform and expertise in hybrid traditional–crypto models. Extending its reach on Solana and tying JupUSD to collateral programs that already enlist institutional parties.
Design, backing and liquidity strategy
Ethena works with Anchorage Digital and steers USDtb toward alignment with the U.S. GENIUS Act. The aim being to meet tighter stablecoin rules before they arrive. If the Act passes or changes, JupUSD could face new custody, transparency or access conditions for institutional buyers, shaping how the asset is offered and managed.
Adoption, liquidity expansion, risk layering and regulatory overhead. Lower transaction costs may pull more on-chain volume into Solana lending products, while the planned USDC swap is expected to expand reserves and market depth inside Jupiter.
At the same time, the chain of collateral running through USDtb and into the BUIDL fund introduces layered risk, where smart contract bugs and centralized operations remain factors, and alignment with the GENIUS Act could open institutional doors while adding oversight and cost.
The next checkpoint is the Q4 2025 release. Until then, progress hinges on code completion, security audits and the regulatory reply—factors that will determine whether JupUSD delivers the liquidity and trust that Jupiter and Ethena forecast.
