Jupiter, a DeFi protocol and trading platform built on Solana, has introduced JupUSD, a stablecoin pegged to the dollar, created in collaboration with Ethena Labs.
In a post on X, Jupiter announced that initially, 90% of the stablecoin’s reserves will be kept in USDtb, a licensed stablecoin backed by shares of BUIDL, BlackRock’s tokenized money-market fund. The remaining 10% will be stored in USDC to serve as a liquidity buffer, alongside a secondary pool on Meteora.
As shared in an announcement with Cointelegraph, Jupiter stated that JupUSD has been issued as an SPL token, which is Solana’s standard token format, facilitating integration across Solana applications. The reserves will be held by Porto via Anchorage Digital and are verifiable onchain.
With Jupiter’s lending product, JupUSD deposits create a yield-bearing JupUSD token that continues to earn returns while being utilized in features like limit orders and dollar-cost averaging. The firm plans to incorporate JupUSD into its perpetuals platform, gradually shifting USDC collateral and liquidity pool balances.
For institutions and market makers, Jupiter noted that JupUSD enables onchain minting and redemption against USDC through single-transaction settlement on Solana.
Ethena Labs, which manages the Ethena protocol and issues USDe and USDtb stablecoins, will oversee the reserve operations, including custody coordination and asset rebalancing, utilizing separate onchain addresses and transparent capacity signals, as stated in the announcement.
According to CoinGecko, Jupiter’s native token, JUP, has increased by approximately 18% in the last seven days data.
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Emergence of Application-Specific Stablecoins
While the stablecoin market, valued at roughly $308 billion, is primarily dominated by Tether’s USDt (USDT) and USDC, 2025 has seen a rise in application-specific stablecoins linked to individual platforms and ecosystems.
In August, MetaMask, a self-custodial wallet by Consensys, unveiled a US dollar-denominated stablecoin aimed for use within its wallet and the Linea DeFi ecosystem. MetaMask mentioned that this token will be incorporated into features like swaps, on-ramps, and bridging.
In September, Hyperliquid, a DeFi perpetual futures exchange, introduced USDH as its native stablecoin for collateral and settlement on the platform. This stablecoin is managed by Native Markets and supported by cash and US Treasury equivalents.
In November, Klarna, a Swedish payments and digital banking entity, launched a dollar-pegged stablecoin on the Tempo blockchain. A spokesperson from Klarna shared with Cointelegraph that the company is initially applying stablecoin technology for internal operations, including cost reduction for international payments.
Most recently, on December 18, SoFi Technologies released SoFiUSD, a fully reserved US dollar stablecoin designed to facilitate low-cost settlements for fintechs, banks, and enterprise platforms.
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