Solana-based decentralized exchange (DEX) Jupiter has launched its own native stablecoin, JupUSD, marking a significant expansion from its role as a liquidity aggregator. Announced in early January 2026, JupUSD is designed as a "game-changer" for onchain finance, aiming to return real-world treasury yield directly to its users and the broader ecosystem.
The stablecoin's reserve structure is a key innovation. JupUSD is backed 90% by USDtb, a licensed stablecoin itself collateralized by shares in BlackRock's BUIDL fund, which invests in short-term U.S. Treasuries and repurchase agreements. The remaining 10% is held in USDC as a liquidity buffer. This setup is intended to provide institutional-grade security while generating continuous yield from traditional finance assets.
Jupiter emphasizes that JupUSD is "the first stablecoin that actively returns native treasury yield to the ecosystem." Users can capture this yield by supplying JupUSD into Jupiter's lending protocol, Jupiter Lend. This action mints a yield-bearing representation token called jlJupUSD, which accrues interest. The projected sustainable APY from this mechanism ranges from 2% to 4%.
The jlJupUSD token is designed to be a composable DeFi primitive. It can be used as collateral within Jupiter's product suite, including for Limit Orders and Dollar-Cost Averaging strategies, allowing capital to remain productive even while deployed for other purposes. Jupiter's team, including developers kashdhanda, benliew, and mandarin_canard, stated the goal is for JupUSD to become a core collateral type across lending, perpetual swaps, and other modules in the "Jupiverse."
The launch is framed around core principles of fairness, innovation, and inclusivity. Jupiter argues that billions in yield from stablecoin reserves should flow back to protocol users and builders, not external issuers. The project is presented as an early-stage development, with plans to expand integrations and partner support over time, while highlighting code audits and custody arrangements for security.
