Key Points
- Ethena Labs and Jupiter are developing JupUSD, a Solana-native stablecoin backed by USDtb.
- The launch of JupUSD is expected towards the end of 2025 or beginning of 2026.
Ethena Labs, a protocol operating on a decentralized basis, and Jupiter, a decentralized exchange (DEX) aggregator built on the Solana blockchain, have announced their plans to launch JupUSD. This is a stablecoin native to Solana and backed by USDtb.
Development and Launch of JupUSD
The development of JupUSD is currently in progress. The launch is expected to occur towards the end of 2025 or at the start of 2026. According to Ethena Labs, the stablecoin is expected to be operational in the coming months. JupUSD will become part of Ethena’s whitelabel stablecoin-as-a-service product line.
In an announcement about JupUSD, Ethena Labs stated that the stablecoin will be integrated into every major part of the Jupiter stack, including Jupiter Perps. This is where approximately $750m in stablecoins inside of JLP will gradually be transferred.
Reaction and Predictions
The crypto community has reacted positively to this announcement, with many expressing their bullish sentiments. The partnership between Jupiter and Ethena Labs has also been commended for its efforts to reduce friction between blockchains.
In a video discussing the partnership and the launch of JupUSD, executives from both entities predicted significant growth for the stablecoin market in the coming year. Guy Young, CEO of Ethena Labs, described stablecoins as one of the most lucrative businesses in DeFi. He further stated that the partnership aims to strengthen the rest of the Jupiter product suite.
Stablecoins have gained popularity throughout 2025. The GENIUS Act in the US, a pro-stablecoin legislation, has paved the way for increased adoption by institutions and individuals.
Ethena’s synthetic stablecoin, USDe, recently surpassed a market capitalization of $14 billion. As of the time of the announcement, it had a market cap of $14.95 billion. On October 3, the total market capitalization of stablecoins exceeded $300 billion for the first time, reaching $313.6 billion as of October 8.
USDe by Ethena makes up about 5% of the total stablecoin cap. Tether’s USDT contributes approximately 58% with a cap of $178 billion, and USDC contributes around 25% with $75 billion.
