Jewel Bank, Polygon to launch Bermuda's first USD-backed stablecoin

Institutions successful Bermuda volition soon beryllium capable to commercialized real-time settlements utilizing a stablecoin with a 1:1 ratio with the United States dollar, Jewel Bank's laminitis and president Chance Barnett told Cointelegraph. 

Called Jewel USD (JUSD), the archetypal stablecoin to beryllium released successful the territory is powered by the Polygon blockchain, enabling transactions betwixt wallets disposable to organization clients. In the future, the slope plans to usage the Polygon ecosystem for commercialized and retail stablecoin-based outgo solutions, including transactions betwixt institutions, businesses, and payments betwixt individuals.

"The request for a USD existent clip colony web extracurricular of the US is important for some fintechs and integer plus firms, truthful we’re filling a ample spread successful the market. The US has solutions similar Signature Signet for existent clip settlement, and present Jewel Bank is providing a Bermuda-based non-US solution for the industry, and the effect by clients successful signing up anterior to motorboat has been significant.", noted Barnett.

On the Polygon blockchain, 25 stablecoins are presently traded, including a synthetic Euro token, a Yen-pegged Japanese stablecoin, and a South African stablecoin pegged 1:1 with the South African Rand (ZAR).

Related: 13% of Americans person present held crypto: JPMorgan research

Although an authoritative motorboat day has not been set, the slope said it should hap wrong the adjacent fewer months. According to the Jewel, the stablecoin operations and its reserves volition beryllium taxable to bank-level audits and regulatory oversight, with updates connected a monthly and quarterly basis.

"The stablecoin is straight issued by the bank, not a lesser regulated entity that doesn’t straight clasp USD fiat deposits/reserves the mode a slope can. This reduces risks for stablecoin holders.", commented the enforcement astir the hazard absorption measures taken to contented the stablecoin. Barnett besides stated:

"JUSD transactions volition lone beryllium imaginable betwixt permissioned clients/wallets, eliminating the quality for atrocious actors to usage these assets for immoderate unsanctioned activity. Jewel whitethorn question to unfastened up its stablecoin to non-clients successful the future."

Bermuda has been moving to support its relevance arsenic a fiscal jurisdiction by supporting integer assets business. In 2020, the territory announced a concern with stablecoin level Stablehouse to rotation retired a aviator programme for a integer “stimulus” token, targeting some residents and merchants wrong the islands.

"With a program to make into an planetary halfway for integer assets business, successful 2018 Bermuda created regulatory clarity and a ineligible model for some integer assets and banking [...] Meanwhile, the US and different starring economies and their regulatory bodies person yet to supply akin clarity and holistic frameworks for integer assets and integer plus businesses.", claimed the Jewel's executive. 

Bermuda Monetary Authority (BMA) granted 14 licenses for crypto firms to run connected the British land territory arsenic of June 2022, with 4 of those issued successful 2022, Cointelegraph reported.