Ethena Labs announced that it has teamed up with Jupiter Exchange to develop JupUSD, a new stablecoin designed to support the largest decentralized trading ecosystem on the Solana network. The token will serve as the main stablecoin in Jupiter's product suite, and was developed using Ethena's Stablecoin-as-a-Service framework.

JupUSD to Replace $750 Million in Stablecoins

According to Ethena, JupUSD will be integrated into every major component of the Jupiter ecosystem. In the initial phase, it will replace around $750 million in stablecoins currently held in the Jupiter Liquidity Pool.

In addition, JupUSD will also be a key asset for lending activities on the Jupiter Lend platform, expanding its role across Solana's DeFi ecosystem.

In the early stages of its launch, JupUSD will be backed by USDTb, a token that is almost fully collateralized by BlackRock's BUIDL fund. Ethena Labs confirmed that JupUSD is still under development and is expected to launch in the coming months. Over time, Ethena plans to diversify its backing assets by adding USDe, Ethena's own synthetic dollar asset, to the stablecoin's reserves.

Ethena Expands Stablecoin-as-a-Service

The launch of JupUSD is part of Ethena's continued expansion efforts through its stablecoin whitelabel program. The company explains that JupUSD is the latest product in its Stablecoin-as-a-Service line, a system that allows blockchain projects to issue customized stablecoins with institutional collateral. This model provides an opportunity for partner protocols to integrate stable assets directly into their own financial systems without relying on third-party issuers.

Ethena mentioned that Jupiter now joins a growing number of leading blockchain protocols and networks that are beginning to adopt the model.

The collaboration between Ethena and Jupiter also reflects a growing trend in the blockchain world, where various ecosystems are starting to launch stablecoins with real backing. For example, Ripple also expanded its DeFi roadmap on the XRPL network to include tokenized assets and stablecoins, signaling growing institutional interest in the sector.

By connecting USDTb and BlackRock's BUIDL fund into the DeFi Solana network, JupUSD aims to unite regulated financial products with decentralized systems, creating a bridge between the traditional financial world and the modern blockchain ecosystem.

Ethena Targets 5% of Stablecoin Market Supply

In a video with Ethena founder Guy Swann and one of the Jupiter team representatives, Swann shared the project's latest developments. He revealed that Ethena's stablecoin ecosystem currently represents around 5% of the total global stablecoin supply.

However, Swann added that the company aims to increase supply to beyond US$50 billion in the next two years.

"We're still small compared to the overall market," said Swann, "but we're committed to continuing to exceed expectations and grow aggressively."

Representatives from Jupiter stated that this partnership reflects the shared goal of making DeFi accessible to anyone around the world. He also highlighted Federal Reserve Governor Chris Waller's recent statement in favor of stablecoins as an efficient global means of payment, signaling their increasingly important role in the modern financial system.

"Jupiter aims to serve all of humanity through DeFi infrastructure," the representative said. "Stablecoins are a critical component of that vision, and we couldn't have found a better partner than Ethena." He described this collaboration as a collaboration between two world-class teams for the advancement of the DeFi ecosystem.