Jupiter formally launched JupUSD, its reserve-backed stablecoin facilitated by Ethena Labs, and it is pegged to the US dollar.
According to the post, JupUSD is launching on battle-tested stablecoin rails, and initially only 90% of reserves will be held in USDtb, a licensed, GENIUS-compliant stablecoin, collateralized by BlackRock’s BUIDL Fund, with a 10% USDC liquidity buffer, paired with a secondary pool on Meteora.
Jupiter debuts its JupUSD stablecoin
Jupiter’s JupUSD stablecoin is being launched with the aid of Ethena Labs, which has experience in the stablecoin market as it has issued over $16 billion in stablecoins to date, including Frax’s USDe integrations and MegaETH’s USDm.
The team has claimed that as time passes, they plan to transition a portion of reserves to USDe in a bid to heighten flexibility, resilience, and encourage efficient economics for the Jupiter ecosystem.
They also claim that JupUSD was built with security in mind, which they attribute to institutional-grade self-custody with Porto by Anchorage Digital. Furthermore, the codebase itself is fully open-sourced, with 3 independent audits from entities like Offside Labs, Guardian Audits, and Pashov Audit Group, all completed before the launch.
To comply with the existing regulations, Jupiter has ensured its new stablecoin does not offer any yields. What it has are powerful integrations like Jup Lend, which can be used to lend, borrow, or even multiply, with benefits not otherwise available for other stablecoins.
“By depositing into Lend’s Earn Vaults, you’ll receive jlJupUSD, which gives you unique promotional rewards on top of your standard lending rewards,” the team claimed on X.
There are also plans in place to set up borrow vaults that will provide JupUSD with additional liquidity and utility, a tandem they claim was made possible due to Jupiter’s unified product stack.
The next item on the team’s agenda is to integrate JupUSD into the rest of the Jupiter product suite. These include: “Limit Orders & DCA (rewards-while-you-wait), Mobile (one-balance UX), Perps (via JLP collateral), and prediction markets (settlement),” ultimately resulting in “One dollar, unified across every product.”
How did the community receive JupUSD?
The launch has been warmly welcomed by community members who piled into the comments section to praise the team for its near-flawless execution.
Of course, there were those who expressed skepticism, with one user demanding to know what was wrong with USDT and USDC. “Why did we need a new stable coin? What problem are you solving here?” The user asked.
Another prevalent question that came up in the comment section was about how JUP holders or stakers would benefit from the creation of JupUSD.
At any rate, the bullish vibes far outweighed the skepticism as users expressed a desire to see how the launch would change things and what it would ultimately mean for the Jupiter ecosystem in the future.
The Jup stablecoin was first announced last year during Solana Breakpoint, along with six other ecosystem upgrades that had people praising the team for constantly shipping great things. During the event, executives claimed controlling both the dollar and the transaction platform would have benefits across use cases, creating a self-reinforcing flywheel effect.
Jupiter’s other ecosystem upgrades
The ecosystem upgrades Jupiter revealed at Solana Breakpoint were touted as deliberate enhancements to its existing infrastructure rather than entirely new directions. Aside from JupUSD, they talked about Jupiter Lend exiting beta and going fully open-source to promote transparency.
They also mentioned upgrading Jupiter Verify by transforming it into a comprehensive trusted data layer for token verification, metadata updates, and high-signal insights. They hope it will help curb scams and vamp tokens.
Other upgrades include the deployment of a unified dashboard for builders who are using Jupiter APIs; the creation of a professional standard trading terminal; the implementation of a unified system for incentives, and the acquisition of Rain.fi, a peer-to-peer lending protocol they plan to use to build an offer book with launch scheduled for the first quarter of 2026.
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