Main highlights
- Jupiter, Solana’s leading exchange, launches its own regulated stablecoin JupUSD, backed by bank-held reserves, to serve as the primary liquidity asset across lending, trading, and future mobile platforms.
- The launch comes in the wake of explosive growth in the stablecoin market after the US passed the GENIUS Act of 2025, with the market surging more than 49% to reach $317 billion.
Jupiter Exchange, the leading decentralized exchange platform for trading on the Solana blockchain, has officially launched its own USD-pegged stablecoin.
A stablecoin for on-chain finance has arrived.
Introduction: JupUSD
A reserve-backed stablecoin pegged to the US dollar designed to power the next chapter in finance.
Let’s dive in 👇 pic.twitter.com/dE0pIj35UV
— Jupiter (@JupiterExchange) January 5, 2026
The new token, called JupUSD, was created in partnership with a company called Ethena Labs. This release follows three separate security reviews of the underlying computer code, allowing the platform to ensure that assets are secure from the start.
Stablecoins are designed to be a central source of liquidity across all Jupiter 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 BlackRock funds that hold tokenized U.S. government bonds.
Jupiter Exchange integrates JupUSD across platform
The launch of JupUSD is already active in many parts of the Jupiter ecosystem. It is now the primary currency of Jupiter Lend, a lending service. It also acts as a type of collateral in the perpetual trading platform of crypto exchanges and is the main trading pair in standard and professional swap interfaces.
According to an official announcement, the company’s future plans include using JupUSD in future products such as mobile applications.
Key highlights of this launch include the conversion of existing liquidity; Jupiter plans to gradually migrate $750 million worth of its current USDC stablecoin reserves into the new JupUSD. Initially, 90% of JupUSD will be backed by bank-held reserves and 10% will be a USDC buffer. The long-term objective is to integrate Etena’s yield-producing stablecoins to further strengthen the system. This is expected to make JupUSD a fundamental financial asset on the Solana network.
Jupiter’s growth and stablecoin market boom
The launch of Jupiter’s stablecoin comes at a time of tremendous growth for the company and the stablecoin sector as a whole. Since its founding in 2021, the decentralized cryptocurrency exchange has become Solana’s primary trade aggregator, currently routing more than half of all decentralized exchange trade volume on the network. In 2025, the platform processed more than $1 trillion in transactions.
The launch of the new stablecoin comes amid explosive growth in the stablecoin market and subsequent new legislation in the United States. The GENIUS Act, signed by President Trump in July 2025, created the first comprehensive federal regulations for stablecoins pegged to the US dollar. The law requires full reserve backing, regular audits, and strict compliance standards.
The regulatory clarity provided by this law has led to explosive growth in the stablecoin market. The market capitalization of all stablecoins has increased by more than 49% to over $317 billion to date. Institutional adoption has rapidly accelerated, with Solana’s own stablecoin supply increasing by 40% to nearly $14 billion. Large traditional financial companies are also joining the trend, with Visa launching its USDC payment system and banks like JPMorgan expanding their blockchain-based coin offerings.
Jupiter faces internal challenges
What do you think if we stop JUP repurchases?
We spent over 70 million yen on share buybacks last year, but obviously the price didn’t move much.
70 million available as growth incentives for existing and new users.
Should I do it?
— ⚔️ SIONG (@sssionggg) January 3, 2026
Despite the growth and launch of stablecoins, Jupiter is facing some internal issues. The value of the native JUP token has fallen sharply, down 89% from its peak. Co-founder Siong Ong publicly questioned the company’s current strategy of using half of the fees to buy back JUP tokens from the market.
In a post on X, Siong Ong said, “What would you all think if we stopped JUP buybacks? Last year we spent over 70 million on buybacks and the price obviously didn’t move much. We could allocate 70 million to growth incentives for existing and new users. Should we do that?”
Ong suggested that the platform should suspend buybacks and instead use the funds to incentivize users and grow the platform, a move that has sparked debate within the Jupiter community. The token price pressure is partially due to the large amount of new JUP tokens scheduled to enter circulation by mid-2026. In response, Jupiter has reduced the size of future planned token distributions to alleviate selling pressure.
Also read: Visa backs stablecoin as US banks use USDC on Solana
