If one wants to glimpse Wall Street's next move in the 2026 crypto market, the Solana blockchain appears to be the best window for observation. On January 5th, Jupiter, Solana's largest trading aggregator, officially launched its native stablecoin, JupUSD, directly tokenizing shares of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and sending them into the fastest settlement layer of DeFi. This is not just "another token pegged to the US dollar," but rather the first time that Silicon Valley code and Wall Street assets have shared accounting rights on the same public blockchain. The market generally believes that JupUSD is a significant watershed moment in DeFi's evolution from a single application to a complete economy.
90/10 Reserve Mechanism: BlackRock Funds as the Main Anchor
According to media reports , JupUSD employs a 90/10 two-tier reserve structure: 90% is invested in BlackRock's BUIDL fund through Ethena's USDtb, indirectly holding short-term US Treasury bonds; the remaining 10% is held in USDC as a liquidity buffer for daily rapid redemptions. The custodian is Porto, a subsidiary of Anchorage Digital, ensuring on-chain verifiability and off-chain auditability. Compared to stablecoins that previously relied on algorithms or single bank deposits, this design transforms institutional Treasury bond funds into "transparent accounting documents," effectively reducing concerns about black-box operations and pushing the tokenization of Real-World Assets (RWA) to the core of the settlement layer.
Vertical integration: from liquidity access to currency issuance
Why is Jupiter choosing to issue its own token now? After MetaMask and Hyperliquid launched their tokens in 2025, the platform saw two major benefits of vertical integration: First, seigniorage and interest income no longer flow to external issuers but remain within its own ecosystem; second, capital efficiency is multiplied. Jupiter simultaneously launched jlJupUSD, allowing users depositing into Earn Vault to earn lending interest and use the same token for order placement or DCA (Discounted Direct Investment) transactions. In the traditional banking system, deposits lose liquidity after being used for lending; however, in DeFi, assets can be used across multiple contracts simultaneously. The official plan is to gradually convert approximately $750 million of liquidity pool (JLP) on the perpetual contract platform into JupUSD, creating the first wave of internal demand.
The new settlement option for institutions is highly praised by the market.
JupUSD has launched a 24/7 atomic settlement feature for market makers, allowing for instant two-way exchange with USDC and eliminating friction caused by weekend market closures. This is particularly crucial for cross-exchange arbitrage institutions, as they previously had to wait off-chain for banks to open to complete transfers. The market reaction was also quite direct. According to CoinGecko data , Jupiter's native token JUP rose by approximately 18% within seven days of the announcement. Under the relatively friendly and clear regulatory framework of the Trump administration, the deep integration of "DeFi + Wall Street" has fewer gray areas, making funds more willing to place bets.
The stablecoin war on Solana is accelerating.
With the launch of PayPal PYUSD and specialized collateralized stablecoins, Solana's USD liquidity is moving towards more segmented competition. Jupiter, which handles over $1 trillion in transactions annually, naturally serves as an entry point into the Solana ecosystem, providing a powerful distribution channel for JupUSD. Compared to other projects that still need to spend heavily on incentives to expand their channels, Jupiter essentially places a "bank counter" directly in its own marketplace. Through BlackRock as a trust anchor, Solana's high-frequency settlement, and on-chain composable financial building blocks, Jupiter transforms money into programmable and interest-bearing technological products. The stability of Wall Street and the innovation of crypto finally meet on the same token, defining a new benchmark for on-chain finance in 2026.
Looking back, JupUSD wasn't just a single product launch, but a shift in industry paradigms: when platforms can control both liquidity entry points and currency orientation. For investors, this means that in the future, on-chain decisions will not only focus on "which application to use," but also on "which base currency to trust." Jupiter's first-mover advantage may well be the starting gun for a new round of stablecoin competition on Solana.
