JupUSD Launches Shockingly! BlackRock BUIDL Fund Supports 90% Reserve Disclosure

Jupiter launches native stablecoin JupUSD, in partnership with Ethena, with 90% reserves supported by the BlackRock BUIDL Fund. It will be integrated into the entire Jupiter product suite, with a phased plan to exchange $500 million USDC collateral. JupUSD will become a key accounting unit in Jupiter’s “super app.”

Three-layer Credit Backing of the BlackRock BUIDL Fund

JupUSD is supported by USDtb, a dollar-pegged stablecoin, and USDC, with Ethena managing “daily reserve operations.” USDtb is issued by Ethena and backed by BlackRock’s tokenized dollar institutional digital liquidity fund (BUIDL). This multi-layer credit structure provides institutional-level credibility that traditional stablecoins cannot match.

The BlackRock BUIDL Fund is the world’s largest tokenized US Treasury fund launched by a major asset manager, with assets exceeding $1 billion, investing in short-term US Treasuries and repurchase agreements. The transparency and security of these underlying assets far surpass the “bank deposit” model of traditional stablecoin issuers. When you hold JupUSD, you are indirectly holding tokenized US Treasuries, one of the highest credit-rated assets globally.

As an intermediate layer, Ethena’s USDtb provides a Delta-neutral hedging mechanism. This means that even during market volatility, USDtb can remain stable. This structure has proven effective during multiple crypto market crashes in 2025, with USDtb’s peg always holding firm when USDC and USDT face redemption pressures. JupUSD inherits this stability while enjoying additional backing from BlackRock.

Jupiter states: “For onboarded institutions and market makers, JupUSD offers 24/7 on-chain USDC single transaction trading, with public limits and clear capacity, facilitating team capital planning.” Redemptions will be open “when on-chain USDC buffers are sufficient,” with the goal of “continuous availability.” Initially, 90% of reserves will be held in USDtb, and the decentralized exchange aggregator Meteora will provide secondary liquidity pools to enhance liquidity.

Revolutionizing the Ecosystem with $500 Million USDC Conversion

Jupiter announced that approximately $500 million worth of Jupiter Perps LP (JLP) USDC will be phased into JupUSD. This is not just a technical currency swap but a fundamental restructuring of Jupiter’s ecosystem economic model. As stablecoins shift from external reliance (USDC) to internal control (JupUSD), Jupiter will gain control over the stablecoin integration economy.

Ethena states: “We expect JupUSD to demonstrate that protocols with stablecoin integration and economic control can: 1. Improve product efficiency; 2. Increase value returned to their ecosystems and users.” This logic is gaining consensus in DeFi. Curve’s crvUSD, Aave’s GHO, and MakerDAO’s DAI are all efforts to control the economic benefits of stablecoin issuance.

Native integration of JupUSD includes its integration with Jupiter Lend, where JupUSD deposits will mint a reward accumulation token called jlJupUSD. This design allows depositors to continuously earn yields while maintaining liquidity. Integration with Jupiter Perps’ JLP pool will “phase in USDC collateral and LP balances” to “unify dollar liquidity across the entire stack.”

Five Application Scenarios for JupUSD Integration

Lending Market Accounting Unit: JupUSD will become the primary lending asset on JupLend, allowing users to deposit JupUSD to earn interest or collateralize other assets to borrow JupUSD. Deposits will automatically mint jlJupUSD reward tokens.

Perpetual Contract Margin: Jupiter Perps will gradually convert USDC collateral into JupUSD, unifying liquidity pools. This conversion will transfer $500 million from Circle-controlled funds into the Jupiter ecosystem, significantly improving capital efficiency.

Limit Orders and Dollar-Cost Averaging Tools: Jupiter’s limit orders and DCA tools will support JupUSD, providing a “single balance user experience” for mobile applications. Users won’t need to switch between different stablecoins, reducing operational complexity.

MEV Protection Collateral: As collateral for malicious transaction (MEV) protection, JupUSD allows users to enjoy MEV protection services without additional token swaps, enhancing user experience.

Prediction Market Settlement: Jupiter’s prediction markets will use JupUSD as the settlement currency, representing another key case of stablecoin application in prediction markets after Polymarket’s use of USDC.

Strategic Expansion of Ethena’s White-Label Services

The launch of JupUSD marks a significant milestone for Ethena’s B2B “white-label” service product, which leverages its “top-tier infrastructure and collateral assets” to help blockchain-based applications and networks launch native stablecoins. Previously, MegaETH and Sui also adopted similar services.

Ethena co-founder Guy Young pointed out that JupUSD represents Ethena’s “next major move into Solana,” as the team aims to enter new product domains. Jupiter previously told The Block that JupUSD plans to support more assets, including Ethena’s flagship asset USDe, which is primarily related to Ethereum but has also been launched on Solana.

The core value of this white-label model is that protocols can quickly launch competitive native stablecoins without building stablecoin infrastructure from scratch. Ethena provides reserve management, risk control, and regulatory compliance support, allowing protocols to focus on product integration and user experience. This division of labor lowers entry barriers and accelerates the diversification of stablecoins.