Key Highlights
- Solana’s leading exchange, Jupiter, has launched its own regulated stablecoin JupUSD, backed by bank-held reserves to serve as a main liquidity asset across its lending, trading, and future mobile platforms
- The launch comes after an explosive growth in the stablecoin market, which saw over 49% surge to $317 billion after the U.S. passed the GENIUS Act in 2025
Jupiter Exchange, the leading decentralized exchange platform for trading on the Solana blockchain, has officially launched its own USD-pegged stablecoin.
The new token, called JupUSD, was created in partnership with a firm named Ethena Labs. Its launch comes after three separate security reviews of the underlying computer code, which will allow the platform to ensure the asset is safe from the start.
The stablecoin is designed to be a central source of liquidity across all of Jupiter’s services. To comply with new federal regulations, its dollar reserves are held by Anchorage Digital, a federally chartered bank. These reserves are primarily held in a fund from BlackRock that holds tokenized U.S. Treasury bonds.
Jupiter Exchange to Integrate JupUSD Across the Platform
The launch of JupUSD is already active in many parts of Jupiter’s ecosystem. It is now a primary currency on Jupiter Lend, a lending service. It also works as a form of collateral on the cryptocurrency exchange’s perpetual trading platform and is a main trading pair on its standard and professional swap interfaces.
According to the official announcement, its future plans include using JupUSD in upcoming products like a mobile application.
A major highlight of this launch involves converting existing liquidity. Jupiter plans to gradually shift $750 million worth of its current USDC stablecoin reserves into the new JupUSD. Initially, 90% of JupUSD will be backed by the bank-held reserves, with a 10% buffer of USDC. The long-term purpose is to integrate a yield-generating stablecoin from Ethena to enhance its system further. This will help JupUSD to become a fundamental asset for finance on the Solana network.
Jupiter’s Growth and Boom in the Stablecoin Market
Jupiter’s stablecoin launch comes during a period of impressive growth for the company and the stablecoin sector at large. Since its inception in 2021, the decentralized crypto exchange has become the dominant trading aggregator on Solana, now routing over half of all decentralized exchange volume on the network. In 2025, the platform processed more than $1 trillion in trades.
The launch of a new stablecoin comes amid the explosive growth in the stablecoin market, followed by new U.S. legislation. The GENIUS Act, signed into law by President Trump in July 2025, created the first comprehensive federal rules for USD-pegged stablecoins. The law requires full reserve backing, regular audits, and strict compliance standards.
The regulatory clarity from this act sparked an explosive growth in the stablecoin market. The total market capitalization of all stablecoins grew over 49% to over $317 billion as of now, according to CoinMarketCap. Institutional adoption accelerated rapidly, with Solana’s own stablecoin supply growing by 40% to nearly $14 billion. Major traditional finance companies have joined the trend, with Visa launching a USDC settlement system and banks like JPMorgan expanding their blockchain-based coin offerings.
Jupiter Faces Internal Challenges
Despite the growth and launch of the stablecoin, Jupiter faces some internal problems. The value of its native JUP tokens has fallen sharply, down 89% from its peak. Co-founder Siong Ong has publicly questioned the company’s current strategy of using half its fees to buy back JUP tokens from the market.
Siong Ong stated in the post on X, saying, “What do you all think if we stop the JUP buyback? We spent more than 70m on buyback last year, and the price obviously didn’t move much. We can use the 70m to give out for growth incentives for existing and new users. Should we do it?”
Ong has suggested that the platform should pause buybacks, instead, use the funds for user incentives and platform growth, which is a move that has sparked debate within Jupiter’s community. The token’s price pressure is partly due to the large scheduled release of new JUP tokens into circulation through mid-2026. In response, Jupiter has reduced the size of a planned future token distribution to try to alleviate sell pressure.
Also Read: Visa Backs Stablecoin as U.S. Banks Use USDC on Solana
Source: https://www.cryptonewsz.com/jupiter-exchange-regulated-jupusd-stablecoin/
