ParaFi Capital invests $35M in Jupiter’s JUP token, signaling institutional confidence as onchain finance expands on Solana.
Jupiter has secured a major institutional investment as onchain finance adoption continues accelerating. ParaFi Capital committed $35M into Jupiter’s native $JUP token. The investment reflects growing confidence in Jupiter’s infrastructure role across decentralized finance markets.
ParaFi Backs Jupiter with Long-Term Strategic Commitment
The transaction was settled entirely in JupUSD, Jupiter’s dollar-pegged stablecoin launched in January 2026. According to project disclosures, the deal closed at spot market price. Additionally, ParaFi agreed to an extended token lockup, reinforcing long-term alignment.
BREAKING:
Jupiter secures a $35M strategic investment into $JUP from ParaFi Capital to accelerate onchain financial infrastructure.
This deal – which will be settled entirely in $JupUSD – was closed at spot price with ParaFi committing to an extended token lockup. pic.twitter.com/7moUP2nQjK
— Jupiter (@JupiterExchange) February 2, 2026
Jupiter described the investment as a strategic partnership rather than a short-term capital raise. Therefore, the funds will support sustained ecosystem development. The commitment arrives as institutional interest in Solana-based infrastructure continues expanding.
The investment coincided with Jupiter’s integration of Polymarket, a leading onchain prediction market platform. This timing highlights Jupiter’s broader push into advanced financial primitives. Consequently, Jupiter is positioning itself beyond simple trade aggregation.
Capital from the round will primarily fund Jupiter Predict. This initiative focuses on onchain prediction market APIs and improved market discovery tools. As a result, Jupiter aims to simplify access to decentralized forecasting products.
Project representatives emphasized that scaling infrastructure remains the priority. Therefore, funds will be deployed gradually to maintain system stability. This approach mirrors broader industry efforts toward sustainable DeFi growth.
ParaFi Capital is known for long-term investments across digital asset infrastructure. Its participation adds institutional credibility to Jupiter’s roadmap. Moreover, the lockup commitment reduces near-term supply pressure on $JUP tokens.
Jupiter Strengthens Solana Dominance and Institutional Appeal
Jupiter currently processes more than 90% of aggregator trading volume on Solana. This dominance underscores its importance within the network’s liquidity stack. Consequently, infrastructure reliability remains critical for Solana’s DeFi ecosystem.
As of February 2026, Jupiter’s total value locked stands near $2.35B. This figure reflects steady growth despite broader market volatility. Additionally, TVL stability signals consistent user engagement.
The Polymarket integration allows users to access prediction contracts directly through Solana. This removes the need for cross-chain bridges. Therefore, liquidity becomes more centralized and execution friction decreases.
Industry observers view prediction markets as a key DeFi growth segment. By integrating Polymarket, Jupiter expands its utility beyond trading. As a result, user retention and platform stickiness may improve.
Institutional interest has also increased following Coinbase’s integration of Jupiter’s trading technology in January 2026. That partnership positioned Jupiter as a backend liquidity provider. Consequently, ParaFi’s investment reinforces confidence in Jupiter as core infrastructure and it JUP token.
Market participants note that institutional capital increasingly favors platforms with proven volume leadership. Jupiter’s metrics support that narrative. Therefore, the investment may influence additional strategic partnerships.
The use of JupUSD for settlement also highlights growing trust in native stablecoins. Stable settlement reduces counterparty risk during large transactions. As a result, Jupiter strengthens its internal financial stack.
Overall, the ParaFi investment reflects a broader shift toward infrastructure-focused DeFi strategies. Rather than chasing speculative yields, institutions are backing foundational platforms. Jupiter appears positioned to benefit from this transition.