Jewel, Bermuda-based bank, to launch stablecoins on Polygon

Jewel, a digital bank in Bermuda, is set to launch its first stablecoins. Reports show that the stablecoin, Jewel USD, will be pegged to the US dollar and built on the Polygon network.

Jewel is a bank that is situated in Bermuda. Bermuda is a British overseas territory located in the North Atlantic Ocean. The region’s name is where the Bermuda Triangle derives its name from.

Stablecoins are digital currencies designed to be pegged on a more stable reserve. These reserves can be gold, fiat like the US dollar, or cryptocurrency.

According to Jewel, JUSD will be in pairs of one is to one with the USD making sure that there is enough US dollar to back each JUSD in circulation. The bank also promised to release a monthly report on the reserve it has for users.

Over the years, there has been increased interest in the creation of stablecoins from Tether, USDC, and Binance USD to Dai, Pax Dollar, and True USD. The majority of the stablecoins created are pegged to the dollar.

Jewel Bank licensed in Bermuda 

In the middle of the year, Jewel Bank was granted a license to operate as a bank and digital asset business in Bermuda. It made it the first digital asset bank in the country.

Going beyond that, the firm wants to leverage the Polygon chain to launch a stablecoin and also future projects that will be relevant to users. Chance Barnett, the founder and chairman of the bank, explained that the stablecoin project and partnership with Polygon would ensure long-term development, safety, speed, and security in the JUSD.

The panic due to the recent collapse in the crypto world is causing a lot of searches for alternative systems. Apart from stablecoins, CBDCs have also been on the rise, especially for central banks around the world.

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