Jupiter has officially launched JupUSD, a new reserve-backed stablecoin designed using the infrastructure of Ethena Labs. This stablecoin is intended to serve as the primary collateral for Jupiter’s decentralized exchange (DEX) products built on the Solana blockchain.
JupUSD is structured with 90% of its reserves in USDtb, a digital asset associated with BlackRock, complemented by a 10% liquidity buffer in USDC to ensure stability and security. There are also plans to incorporate USDe into its reserves in the future to enhance efficiency.
Institutions will have the ability to mint JupUSD around the clock using USDC, with custody solutions provided by Anchorage Digital through Porto. This robust minting process allows for single on-chain transactions, supported by established limits and capacity metrics. The team at Jupiter has assured users that redemptions will hinge upon the liquidity availability of the on-chain USDC buffer, emphasizing a focus on ongoing access for users.
This launch marks a significant milestone for Jupiter as highlighted by Ethena co-founder Guy Young, who refers to JupUSD as a crucial step forward in expanding the platform’s offerings on Solana. The project aims to strengthen its market position while providing a reliable and efficient stablecoin option for its users.
Open-source and continuously audited, the JupUSD codebase has gained validation from multiple audit firms, including Offside Labs and Pashov Audit Group. Jupiter’s liquidity strategy will leverage both its venues and an additional liquidity pool on Meteora, which is expected to bolster the coin’s market presence.
As JupUSD aims to transition parts of its reserves to USDe, the overall vision is to enhance the platform’s resilience and economic efficiency within the broader Jupiter ecosystem. This adaptive approach reflects the team’s commitment to innovation and growth in the rapidly evolving world of decentralized finance (DeFi).