The Little Switzerland of the Atlantic – This Bermuda bank will launch a stablecoin soon, to enable its institutional clients to make payments in real time, taking advantage of the possibilities offered by the blockchain.
Bermuda’s first stablecoin on Polygon
Addressing the media Cointelegraph, the founder and chairman of the Jewel Bank, Luck Barnettsaid its institutional clients in Bermuda will soon be able to settle in real time using a stablecoin, the Jewel USD (JUSD). It is hosted on the blockchain Polygon (MATIC).
On its website, Jewel Bank advertises itself as a Bermuda-based digital asset banking platform that caters to crypto exchanges, institutional investors, market makers, and over-the-counter trading firms.
The Jewel Bank will issue the Jewel USD, which will be the first stablecoin launched in Bermuda, and whose value will present parity with the US dollar. On the other hand, the JUSD is not the first stablecoin to be traded on Polygon. It will join twenty-five others there, including stablecoins with a price anchored to the Japanese yen or the South African rand. JUSD should be launched in the coming monthsbut she hasn’t set an official launch date yet.
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The fundamentals of JUSD: issuer, guarantees, audits, and users
To promote the JUSD and reassure its future users, Chance Barnett highlighted the fact that its issuer is a bank, and not “an unregulated entity”. Unlike other companies that issue a stablecoin, as a bank, Jewel Bank can hold deposits or reserves in fiat currencies.
In addition, these reservations as well as transactions relating to JUSD will be subject to audits at bank level, and will be subject to regulatory oversight. Within this framework, monthly and quarterly updates are planned.
To reinforce this idea of a highly regulated stablecoin, Chance Barnett also pointed out that only authorized customers of the bank will be able to carry out transactions in JUSD. This provision would exclude “bad actors” and thus prevent uses of the stablecoin for “any unauthorized activity”. In the future, the Jewel Bank could also “ open your stablecoin to non-clients “.
The bank seems to want so gradually expand the size of the segments, which will be able to use the JUSD. When launched, the stablecoin is intended for institutional clients only. However, in the long term, the bank plans to offer commercial and retail payment methods that use stablecoins and the Polygon ecosystem, in order to enable transactions between institutions and companies, and settlements between individuals.
Bermuda continues to be a favorable jurisdiction for the development of cryptocurrencies, and this initiative by Jewel Bank reinforces this image. As early as 2019, the country’s government announced that it accepts tax payments in USD Coin (USDC).
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