At the 2025 Solana Breakpoint Conference, Jupiter's Chief Operating Officer Kash Dhanda announced that the stablecoin JupUSD will officially launch next week. This asset, pegged to the US dollar at a 1:1 ratio, marks a liquidity transformation for the Solana ecosystem. As the largest trading aggregator on Solana, Jupiter has accumulated a trading volume of over $32 billion, with 1.8 million monthly active users and a trading penetration rate exceeding 65%. However, 92% of long-term stablecoin liquidity relies on USDC and USDT, limiting core business operations dependent on external institutions.
The issuance of JupUSD is a key move for completing the Jupiter ecosystem loop: commercially, the annual yield of the stablecoin can reach 2%-4% at scale, with an annual yield exceeding $30 million for a scale of $1 billion; ecologically, it can increase user dependency by over 40%. Technically supported by Ethena's mature white-label services, the launch cycle is shortened to 3 months, initially 100% backed by AAA-rated government bonds held in custody by Bank of New York Mellon (USDtb), with a collateral ratio of 102%. USDe will be introduced in Q2 2026 to form a hybrid structure that balances safety and yield.
In terms of ecological integration, JupUSD will replace the existing $750 million liquidity of Jupiter within three months. In contract operations, it has become the core collateral, reducing the process from 5 steps to 2 steps, and the transaction time has decreased from 45 seconds to 12 seconds; the lending pool has an annualized return of 4.2%, higher than USDC (3.5%) and USDT (2.8%); the trading slippage has decreased by 0.2-0.5 percentage points, and the turnover rate of market maker funds has increased by 30%.
In the market, the Solana stablecoin market USDC/USDT monopolizes 93% of the share, with decentralized stablecoins being small in scale and low in trust, JupUSD just fills the gap. It comes with a scenario of 1.8 million monthly active users, and Messari predicts that its market capitalization could reach $1.5-2 billion within a year of launch. Currently, 3 traditional financial institutions have expressed interest in connecting, making it an important choice for institutional investment in Solana. However, it still needs to build trust through monthly audit reports and address regulatory challenges from the US and Europe.
