Polygon and Jewel Bank to Launch Bermuda’s First USD-backed Stablecoin

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The JUSD stablecoin will enable real-time settlements to institutional investors in the territory. News Collect this piece of crypto history. NFTInstitutions in Bermuda will soon have the ability to trade real-time settlements using an NFT stablecoin that has a 1:1 ratio with USD, Chance Barnett, Jewel Bank’s chairman, told Cointelegraph. The Polygon blockchain powers Jewel USD (JUSD), which is the first stablecoin released in the territory. It allows transactions between wallets that are available to institutional clients. The bank plans to continue using the Polygon ecosystem for commercial stablecoin-based payments solutions. This includes transactions between institutions, businesses and individuals. We fill a significant gap in the market by providing a USD real-time settlement network outside the US. This is important for both digital asset firms and fintechs. Signature Signet is a US solution for real-time settlement. Jewel Bank now offers a Bermuda-based non US solution for the industry. The response from clients who signed up before launch has been impressive. “, noted Barnett. Barnett noted that 25 stablecoins can be traded on the Polygon blockchain. These include a synthetic Euro token and a Yen pegged Japanese stablecoin. A South African stablecoin is also available, pegged 1:1 with South African Rand (ZAR). Although an official launch date has yet to be set, the bank stated that it would happen in the next few months. The Jewel states that the operations of the stablecoin and its reserves will be subjected to bank-level audits, regulatory oversight, and updates on a monthly, quarterly, and annual basis. The bank directly issues the stablecoin, and not any other regulated entity that does not hold USD fiat deposits/reserves in the same way as a bank. This reduces the risk for holders of stablecoin. The executive commented on the risk management measures taken in order to issue the stablecoin. Barnett stated that JUSD transactions would only be possible between authorized clients/wallets. This will eliminate the possibility for bad actors to use these assets in any unapproved activity. Jewel may open its stablecoin to other clients in the future. Bermuda has been trying to maintain its relevance as a financial jurisdiction through supporting digital assets businesses. The territory announced a partnership in 2020 with stablecoin platform Stablehouse. This partnership will allow the launch of a pilot program for a digital stimulus token. It will be available to both residents and merchants on the islands. “Bermuda, with a plan to become an international center for digital asset business, created regulatory clarity in 2018 and a legal framework to both digital assets […] While the US and other major economies, and their regulatory bodies, have yet to provide similar clarity to digital assets and digital-asset businesses, According to the Jewel’s executive, ” Cointelegraph reported that the Bermuda Monetary Authority (BMA), granted 14 licenses to crypto firms to operate on British island territory. Four of them were issued in 2022.