Jewel Bank, Polygon to launch Bermuda's first USD-backed stablecoin
Institutions in Bermuda will soon be able to trade real-time settlements using a stablecoin with a 1:1 peg to the United States dollar, Jewel Bank founder and chairman Chance Barnett told Cointelegraph.
Called Jewel USD (JUSD), the first stablecoin to be released in the territory is powered by the Polygon blockchain, enabling transactions between wallets available to institutional clients. In the future, the bank plans to use the Polygon ecosystem for commercial and retail stablecoin-based payment solutions, including transactions between institutions and businesses and payments between individuals.
“The need for a USD real-time settlement network outside of the U.S. is significant for both fintechs and digital asset firms, so we’re filling a large gap in the market," said Barnett. “The U.S. has solutions like Signature Signet for real-time settlement, and now Jewel Bank is providing a Bermuda-based non-U.S. solution for the industry, and the response by clients in signing up prior to launch has been significant.”
Twenty-five stablecoins are currently traded on the Polygon blockchain, including a synthetic euro token, a Yen-pegged Japanese stablecoin and a South African stablecoin pegged 1:1 with the South African rand.
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Although an official launch date has not been set, the bank said it should happen within the next few months. According to Jewel, the stablecoin‘s operations and its reserves will be subject to bank-level audits and regulatory oversight, with updates on a monthly and quarterly basis.
“The stablecoin is directly issued by the bank, not a lesser regulated entity that doesn’t directly hold USD fiat deposits/reserves the way a bank can. This
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