Jupiter has launched JupUSD, a native stablecoin on Solana, formally announced between January 5–7. The token uses a dual-reserve design anchored primarily to a tokenized BlackRock money-market fund, a move Jupiter says is intended to strengthen liquidity and institutional-grade backing for Solana DeFi.
JupUSD is structured as a dual-collateral stablecoin. Roughly 90% of its reserves are tied to USDtb, a compliant stablecoin that tracks BlackRock’s BUIDL fund, while the remaining 10% is held as USDC to provide immediate liquidity through a secondary Meteora pool.
The BUIDL fund itself was tokenized in March 2024 by Securitize and is positioned as a tokenized money-market instrument that holds U.S. Treasuries and offers daily yield, providing the sort of institutional-grade collateral Jupiter highlighted when announcing the launch.
Ethena Labs supplies the Stablecoin-as-a-Service infrastructure and oversees daily reserve operations; custody and institutional plumbing are handled through Porto by Anchorage Digital, with compliance frameworks referenced in the launch materials. Jupiter framed the configuration as a way to reduce counterparty concentration and to anchor a native dollar on Solana in assets that are familiar to institutional treasuries.
Integration, liquidity plans and market mechanics
Jupiter said it intends to migrate about $750M of existing USDC liquidity into JupUSD, a conversion meant to consolidate liquidity and create deeper native pools on Solana. The team plans to integrate JupUSD across its suite of services so the stablecoin can serve as the settlement and margin asset for swaps, lending vaults and perpetuals, which would tighten internal liquidity loops and lower reliance on external stablecoin rails.
Operationally, the Meteora pool provides an on-chain liquidity buffer while Ethena’s SCaaS handles peg mechanics. Jupiter argues this architecture will reduce immediate counterparty exposure and offer a pathway for institutional capital to enter Solana DeFi via tokenized money-market exposure.
Risks remain. The move concentrates collateral exposure to a single institutional fund vehicle and introduces dependencies on the operational robustness of custodial partners and reserve managers. Market participants and treasuries will weigh credit, custody and regulatory profile of the underlying tokenized fund versus liquidity advantages when deciding whether to adopt JupUSD in their stacks.
Investors and market makers are likely to watch the timing and scale of Jupiter’s planned conversion of roughly $750M of USDC into JupUSD and how quickly the token is adopted across Jupiter’s swaps, lending and perpetuals products; those developments will determine whether the new stablecoin meaningfully reshapes liquidity and capital flows on Solana.
