Jupiter and Ethena to Launch JupUSD Amid Stablecoin Market Boom

The stablecoin sector has gained momentum following legalization in the US. Jupiter, the leading DEX for Solana, now plans to launch its own stablecoin, JupUSD, with Ethena. This confirms a trend.

The crypto industry has access to a good $300 billion through stablecoins such as Tether (USDT) and USDC, compared to just $173 billion a year ago. Ever since stablecoins were legalized in the US through the Genius legislation, the sector has been experiencing dynamic growth.

Jupiter Expands on Solana with Its Own Stablecoin, JupUSD, Targeting $750 Million Market Cap

In the Solana ecosystem, the Circle stablecoin USDC has so far been the number one. But now the decentralized crypto exchange (DEX) Jupiter wants to establish an alternative there. Per X , Jupiter has announced that it will launch its own stablecoin, called JupUSD, by the end of the year in cooperation with Ethereum.

Ethena is also already promoting the JupUSD project via X and is initially targeting a market capitalization of $750 million for the new stablecoin. This would put JupUSD in the same league as the Ripple stablecoin RLUSD. JupUSD will be used on Jupiter for derivatives trading, lending, and other offerings. According to Jupiter, JupUSD will initially be backed by the Ethena stablecoin USDtb (market capitalization $1.8 billion), which in turn holds its reserves in tokenized US Treasury bonds via BUIDL from BlackRock.

JupUSD first stablecoin partnership between Ethena and Solana

In the medium term, Ethena USDe will also be incorporated into Jupiter’s concept. With a market capitalization of nearly $15 billion, USDe has become the number three stablecoin, and JupUSD is also expected to benefit from this experience. A dedicated stablecoin promises customer loyalty and improved user experiences for Jupiter. With $20 billion in monthly revenue, Jupiter is a heavyweight in the SOL ecosystem, and according to Ethena founder Guy Young, JupUSD will be the first stablecoin partnership with Solana .

Meanwhile, experts are noticing a trend toward proprietary stablecoins. Crypto wallets like MetaMask and Phantom are working on their own stablecoins, as are Amazon, Walmart, Expedia, and other companies. This is comparable to the trend toward proprietary blockchains , such as those of SWIFT, Google, Coinbase (BASE), and Stripe (Tempo). Fee revenue and technological control are two reasons for developing self-developed solutions rather than relying on existing offerings.

Conclusion: Stablecoin JupUSD from Jupiter and Ethena before launch and practical text

JupUSD is currently undergoing security tests, according to information from Jupiter and Ethena, and a launch is expected in November or December. Then it remains to be seen whether the plan will pay off and JupUSD can justify the advance praise.

One thing is clear: competition among stablecoins is increasing, and even crypto giant Ripple is finding that its own stablecoin, RLUSD, is experiencing less acceptance than hoped. As Jupiter’s native stablecoin, JupUSD at least has a solid starting point.

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