Fundamental highlights
- Jupiter, Solana’s main trade, launches its personal regulated stablecoin JupUSD, backed by bank-held reserves, to function the first liquidity asset throughout lending, buying and selling, and future cell platforms.
- The launch comes within the wake of explosive development within the stablecoin market after the US handed the GENIUS Act of 2025, with the market surging greater than 49% to succeed in $317 billion.
Jupiter Alternate, the main decentralized trade platform for buying and selling on the Solana blockchain, has formally launched its personal USD-pegged stablecoin.
A stablecoin for on-chain finance has arrived.
Introduction: JupUSD
A reserve-backed stablecoin pegged to the US greenback designed to energy the subsequent chapter in finance.
Let’s dive in 👇 pic.twitter.com/dE0pIj35UV
— Jupiter (@JupiterExchange) January 5, 2026
The brand new token, known as JupUSD, was created in partnership with an organization known as Ethena Labs. This launch follows three separate safety opinions of the underlying pc code, permitting the platform to make sure that belongings are safe from the beginning.
Stablecoins are designed to be a central supply of liquidity throughout all Jupiter companies. To adjust to new federal rules, its greenback reserves are held by Anchorage Digital, a federally chartered financial institution. These reserves are primarily held in BlackRock funds that maintain tokenized U.S. authorities bonds.
Jupiter Alternate integrates JupUSD throughout platform
The launch of JupUSD is already energetic in lots of components of the Jupiter ecosystem. It’s now the first forex of Jupiter Lend, a lending service. It additionally acts as a kind of collateral within the perpetual buying and selling platform of crypto exchanges and is the principle buying and selling pair in customary {and professional} swap interfaces.
In response to an official announcement, the corporate’s future plans embody utilizing JupUSD in future merchandise reminiscent of cell purposes.
Key highlights of this launch embody the conversion of present liquidity; Jupiter plans to step by step migrate $750 million price of its present USDC stablecoin reserves into the brand new JupUSD. Initially, 90% of JupUSD can be backed by bank-held reserves and 10% can be a USDC buffer. The long-term goal is to combine Etena’s yield-producing stablecoins to additional strengthen the system. That is anticipated to make JupUSD a elementary monetary asset on the Solana community.
Jupiter’s development and stablecoin market growth
The launch of Jupiter’s stablecoin comes at a time of large development for the corporate and the stablecoin sector as an entire. Since its founding in 2021, the decentralized cryptocurrency trade has change into Solana’s major commerce aggregator, presently routing greater than half of all decentralized trade commerce quantity on the community. In 2025, the platform processed greater than $1 trillion in transactions.
The launch of the brand new stablecoin comes amid explosive development within the stablecoin market and subsequent new laws in america. The GENIUS Act, signed by President Trump in July 2025, created the primary complete federal rules for stablecoins pegged to the US greenback. The legislation requires full reserve backing, common audits, and strict compliance requirements.
The regulatory readability supplied by this legislation has led to explosive development within the stablecoin market. The market capitalization of all stablecoins has elevated by greater than 49% to over $317 billion up to now. Institutional adoption has quickly accelerated, with Solana’s personal stablecoin provide growing by 40% to just about $14 billion. Giant conventional monetary corporations are additionally becoming a member of the pattern, with Visa launching its USDC cost system and banks like JPMorgan increasing their blockchain-based coin choices.
Jupiter faces inside challenges
What do you assume if we cease JUP repurchases?
We spent over 70 million yen on share buybacks final 12 months, however clearly the worth did not transfer a lot.
70 million accessible as development incentives for present and new customers.
Ought to I do it?
— ⚔️ SIONG (@sssionggg) January 3, 2026
Regardless of the expansion and launch of stablecoins, Jupiter is going through some inside points. The worth of the native JUP token has fallen sharply, down 89% from its peak. Co-founder Siong Ong publicly questioned the corporate’s present technique of utilizing half of the charges to purchase again JUP tokens from the market.
In a put up on X, Siong Ong mentioned, “What would you all assume if we stopped JUP buybacks? Final 12 months we spent over 70 million on buybacks and the worth clearly did not transfer a lot. We might allocate 70 million to development incentives for present and new customers. Ought to we do this?”
Ong recommended that the platform ought to droop buybacks and as a substitute use the funds to incentivize customers and develop the platform, a transfer that has sparked debate throughout the Jupiter group. The token worth stress is partially as a result of great amount of recent JUP tokens scheduled to enter circulation by mid-2026. In response, Jupiter has decreased the scale of future deliberate token distributions to alleviate promoting stress.
Additionally learn: Visa backs stablecoin as US banks use USDC on Solana
