Jewel Bank founder and chairman Chance Barnett told Cointelegraph that Bermudian institutions will soon be able to make real-time settlements using StableCoin, which is pegged 1:1 to the US dollar.
The first stablecoin released in the space, Jewel USD (JUSD), is based on the Polygon blockchain and will enable cross-wallet transactions for institutional clients. In addition, the bank plans to use the Polygon ecosystem as a stable business and retail payment solution, including transactions between institutions and companies, as well as payments between individuals.
“The need for a real-time USD settlement network outside of the US is critical for US asset and fintech companies, so we’re filling a huge gap in the market,” Barnett said. “We have US-based solutions like Signature Signet for real-time billing, and Jewel Bank now offers a Bermuda-based solution for non-US businesses, and customer response to pre-launch registrations has been very encouraging.”
25 stablecoins are currently traded on the Polygon blockchain, including a synthetic euro token, a Japanese stablecoin pegged to the yen, and a South African stablecoin pegged 1:1 to the South African rand.
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While an official on-sale date has not been set, the bank said it plans to release it in a few months. According to Jewell, the viability of the stability coin and its reserves will depend on bank-level audits and regulatory oversight with monthly and quarterly updates.
“StabilityCoin is issued directly by banks, not less regulated entities that do not deposit USD/reserves directly like banks. This reduces risk for fixed income holders,” Burnett said:
“JUSD transactions can only be made within authorized clients/wallets, making it impossible for attackers to use these assets for illegal activities. Jewel may decide to open Stablecoin to non-customers in the near future.”
By supporting the trading of digital assets, Bermuda has taken steps to maintain its relevance as a financial jurisdiction. In 2020, the region announced a partnership with stabilitycoin platform Stablehouse to launch a pilot project to create “incentive” digital tokens aimed at island residents and businesses.
“In 2018, Bermuda clarified the regulatory and legal framework for digital assets and banking with the aim of becoming an international hub for digital asset trading. At the same time, the United States and other major economies and their regulators have not been able to create a clear and consistent framework for digital assets and digital asset companies,” Barnett said.
According to Cointelegraph, the Bermuda Monetary Authority has issued 14 licenses to cryptocurrency companies in the British Isles until June 2022, with four licenses expiring in 2022.
Source: Coin String
Source: Coin String