- Jupiter launched JupUSD, a reserve-backed stablecoin built with Ethena Labs infrastructure to serve as primary collateral across its Solana DEX products.
- The stablecoin is backed by a 90% allocation in BlackRock-linked USDtb and a 10% USDC buffer, with plans to incorporate USDe for improved efficiency.
- Institutions can mint JupUSD 24/7 using USDC via Anchorage Digital custody, supported by audited open-source code and liquidity pools on Jupiter and Meteora.
Solana-based decentralised protocol Jupiter has introduced a new dollar-pegged stablecoin, JupUSD, and they’re marketing it as common collateral that can be used across the Solana-based DEX aggregator’s products.
The stablecoin is reserve-backed and built using infrastructure from Ethena Labs, with custody handled through Porto by Anchorage Digital. Jupiter said institutions and market makers will be able to mint JupUSD 24/7 in a single on-chain transaction using USDC, with published limits and capacity.
Also, all redemptions will depend on whether the on-chain USDC buffer has sufficient liquidity, with the team saying it is targeting ongoing availability.
Ethena co-founder Guy Young described JupUSD as the firm’s next “major step on Solana” as it expands into new product areas.
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How JupUSD Works
At launch, JupUSD’s reserves are structured with a heavy tilt toward USDtb. Jupiter said 90% of backing will be held in USDtb, while 10% will be kept as a USDC liquidity buffer.
USDtb is issued by Ethena and is presented as GENIUS-compliant, with collateral tied to BlackRock’s tokenised USD Institutional Digital Liquidity Fund (BUIDL). Jupiter also said it plans to move part of reserves into USDe over time, aiming to increase flexibility and improve reserve efficiency.
The JupUSD codebase has been open-sourced and audited by Offside Labs, Guardian Audits, and Pashov Audit Group. Moreover, liquidity support is expected to come from Jupiter’s own venues and an additional pool on Meteora, which the team said will serve as a secondary pool to help deepen liquidity.
Over time, we plan to transition a portion of reserves to USDe for additional flexibility, resilience, and efficient economics for the Jupiter ecosystem.
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