Jupiter Unleashes JupUSD: The DeFi Stablecoin Backed by BUIDL and USDC Reserves

Jupiter just dropped a new contender into the crowded stablecoin ring. Meet JupUSD—a fresh digital dollar that doesn't just rely on promises.

The Dual-Engine Backing

Forget single-asset reserves. Jupiter's play is a two-pronged vault. One side stacks USDC, the blue-chip stablecoin. The other? BUIDL—the real-world asset token from BlackRock. It's a hybrid model designed to balance crypto-native liquidity with traditional finance's bedrock.

Why This Move Matters Now

The timing isn't random. DeFi's hunger for reliable, yield-generating collateral is insatiable. By blending a top-tier stablecoin with tokenized treasury bills, Jupiter aims for a stability profile that pure-algorithmic coins couldn't touch and single-fiat coins often lack in transparency. It's a direct bid for the institutional cash sloshing at the edges of crypto.

The Mechanics Under the Hood

Think of it as a reserve-backed system with a DeFi twist. The protocol uses its reserves to generate yield—a portion of which presumably flows back to JupUSD holders or the treasury. It's stability, but with an engine that's actually running, not just parked in a bank vault earning nothing for its users. A novel concept in a sector where 'full reserve' often means 'zero return.'

Jupiter isn't just launching another peg; it's architecting a capital-efficient foundation for its entire ecosystem. JupUSD could become the preferred settlement layer within its DEX aggregator and beyond, locking in liquidity and creating a self-reinforcing financial loop. Because in crypto, the real game isn't just holding value—it's putting every single dollar to work. Even the stable ones.

TLDR

• JupUSD is backed 90% by USDtb, collateralized by BlackRock’s BUIDL Fund, and 10% by USDC.
• Jupiter uses Porto by Anchorage Digital for institutional-grade custody of JupUSD reserves.
• The stablecoin will integrate into Jupiter Lend, DCA tools, perps, and prediction markets.
• JupUSD code is open-sourced and audited by Offside Labs, Guardian, and Pashov.

Jupiter, a Solana-based decentralized finance protocol, has launched a new stablecoin named JupUSD. The token is pegged to the US dollar and is built to act as unified collateral across Jupiter’s growing suite of financial products.

According to the announcement, JupUSD is backed 90% by USDtb, a stablecoin backed by BlackRock’s BUIDL Fund, and 10% by USDC. The BUIDL Fund is a tokenized money market fund managed by BlackRock. The reserves are secured through custody provider Porto by Anchorage Digital.

JUST IN: Jupiter LAUNCHES NATIVE STABLECOIN

JupUSD is backed 90% by BlackRock and Ethena’s USDtb, marking another major step in institutional-grade stablecoins entering DeFi. pic.twitter.com/lBRw4IuWnw

— Coin Bureau (@coinbureau) January 5, 2026

The stablecoin will not offer yield directly but is designed to support liquidity, lending, and collateral across Jupiter’s ecosystem. Its launch marks a step toward deeper integration between stablecoin infrastructure and decentralized platforms.

Integration Across Jupiter’s Full Product Suite

JupUSD will be implemented across Jupiter’s Core DeFi products including lending, automated investing, and trading tools. The integration is intended to create a consistent unit of account for users across multiple functions.

In Jupiter Lend, users can deposit JupUSD into Earn Vaults to receive jlJupUSD, which includes promotional rewards in addition to standard interest. Borrow Vaults will also allow users to take loans using JupUSD as collateral, increasing utility and liquidity.

Jupiter confirmed upcoming support for JupUSD in additional products like Limit Orders, Dollar Cost Averaging (DCA), Perpetuals using JLP collateral, and prediction markets. Each of these platforms will treat JupUSD as a base stablecoin, supporting a seamless user experience across services.

Built with Security and Regulatory Considerations

The JupUSD token was created with a focus on security and compliance. Its infrastructure is provided by Ethena Labs, which has experience with issuing over $16 billion in stablecoins, including USDe and USDm.

To meet regulatory standards, JupUSD will not generate direct yield and will instead serve as a stable unit of collateral. All code for the stablecoin has been made open source and was independently audited by Offside Labs, Guardian Audits, and Pashov Audit Group prior to launch.

Porto by Anchorage Digital provides custody of the stablecoin’s backing assets. The institution is recognized for providing regulated digital asset custody services, adding an additional LAYER of trust to the project.

Community Response and Future Developments

The community has responded positively to the launch. Supporters have praised the move toward a unified stablecoin strategy within the Jupiter ecosystem. Some users questioned the need for a new stablecoin when USDC and USDT already exist. Others asked how holders of Jupiter’s native token, JUP, WOULD benefit.

Jupiter executives had previously shared plans for JupUSD during solana Breakpoint 2025. At the event, they outlined how a native stablecoin would create synergy across products, helping to simplify liquidity flows and reduce fragmentation.

Alongside JupUSD, Jupiter also revealed other upgrades including a revamped Verify product, a new trading terminal, and tools for builders using its APIs. The team also announced the acquisition of Rain.fi to expand peer-to-peer lending options, with a launch targeted for Q1 2026.