Solana Makes a New $1 Billion Move: This Stablecoin Can Now Earn Interest

Jupiter, a Solana-based trading and lending platform, has created a new on-chain lending marketplace for USDGO. Through this integration, users can deposit USDGO and earn varying returns based on borrowing demand, or borrow stablecoins by pledging their crypto assets as collateral.

USDGO is issued by Anchorage Digital Bank, which is regulated in the US. The token is managed and distributed by OSL Group, which is traded on the Hong Kong stock exchange. The stablecoin’s reserves include short-term US Treasury bonds. USDGO’s market capitalization is approximately $1.1 billion, compared to around $1.29 billion in mid-October.

OSL offers a yield on USDGO tied to the US policy interest rate on its own platform. In May, the rate after fees was approximately 3.24%. However, this service is only available to professional investors. Jupiter’s new marketplace allows other users to earn USDGO yield on-chain. The interest rate here will not be fixed and will vary depending on borrowing demand.

Jupiter Lend announced that it has over $1 billion in active lending. Bitget Wallet also added the new lending market to its wallet, which doesn’t offer its own custody service. This means that the wallet’s reported 100 million users can access USDGO deposit and borrowing options without leaving the app.

The new market expands USDGO’s use case beyond payments and trading. However, on-chain returns shouldn’t be considered risk-free bank interest. Smart contract vulnerabilities, collateral liquidations, stablecoin reserves, and volatile borrowing demands are among the risks users may face. Jupiter and Bitget Wallet integration could expand reach, but user demand will determine USDGO’s long-term market share against USDT and USDC.