Jupiter has now launched JupUSD on Solana as a new application-specific stablecoin backed by BlackRock’s BUIDL fund.
The defi space has now seen a major bridge forming between Wall Street and the Solana blockchain.
Jupiter, one of the top trading platforms on Solana, officially launched its own dollar-pegged token called JupUSD.
This move is a change in how Jupiter wants money to work within its ecosystem. Instead of relying solely on outside tokens like USDC, Jupiter is building its own internal currency to power its features.
How the JupUSD Stablecoin Backup Works
The structure of JupUSD is quite different from older digital dollars as most stablecoins hold cash in bank accounts.
However, 90% of the reserves for this new token sit in USDtb. The licensed asset uses shares of BlackRock’s tokenised money-market fund, BUIDL, as collateral.
The structure keeps the remaining 10% in USDC to support fast trades.
Ethena Labs is a major part of this trend when it comes to managing these reserves.
Jupiter launches new stablecoin to control liquidity within its ecosystem | source: X
They handle the daily operations and make sure that the assets are rebalanced correctly. Everything happens on the blockchain, which means anyone can verify the backing at any time.
This transparency is important because it builds trust with both retail users and big institutions.
Why Jupiter Built the JupUSD Stablecoin
Jupiter is moving away from being a simple trading tool and wants to become a “superapp” for finance.
By owning the JupUSD stablecoin, the platform intends to keep more of the economic value inside its own system.
Before now, when users traded with other stablecoins, the profit from those reserves went to outside companies.
Now, that value stays with Jupiter and its users.
The token is designed to work across the entire Jupiter stack and within the lending product. This means that users can deposit their funds to mint a yield-bearing version.
This allows people to earn interest while still using their money for other tasks, like setting limit orders or automated buying plans.
This level of flexibility is hard to find in traditional banking.
The Rise of Application-Specific Stablecoins
We are seeing a new trend, called application-specific tokens. In the past, everyone used the same two or three big stablecoins like USDT and USDC for everything.
Now, platforms like MetaMask, Hyperliquid and even the Swedish bank Klarna are all launching their own branded dollars.
These tokens are built to solve specific problems within a single app.
For Jupiter, this means better control over its perpetual futures platform. The company plans to gradually move away from using USDC as its main collateral. By using its own native token, Jupiter is attempting to reduce risks and offer better terms to its traders.
This creates a closed-loop economy where the platform has full control over its liquidity and settlement.
Institutional Features and Security
Security is always a major concern for new products and Jupiter made sure that JupUSD passed three independent audits before it went live.
Firms like Offside Labs and Guardian Audits checked the code for any weaknesses and the assets themselves are held in institutional-grade custody through Porto by Anchorage Digital.
For big market makers, the system supports single-transaction settlement on Solana.
This means institutions can mint or redeem large amounts of the token against USDC almost instantly.
This speed is important for high-frequency trading and helps keep the price of the stablecoin stable at exactly one dollar.
Related Reading: Jupiter Launches Mobile V3 as Native Pro Trading Terminal
What This Means for the Solana Ecosystem
The launch of JupUSD has already had a positive effect on the market. Data from CoinGecko shows that the price of Jupiter’s native token (JUP) rose by 18% in the weekly timeframe, after the announcement.
This means that investors seem to like the idea of the platform owning its own settlement layer.
Solana is becoming a favourite home for these types of high-speed tools because of its speed and cheapness.
As more real-world assets move onto the blockchain, the line between traditional stock markets and DeFi will continue to disappear.
