Bermuda-based bank releases USD-pegged stablecoin

Bermuda’s first digital asset bank, Jewel, launched a stablecoin JUSD at the Polygon network. The company will release quarterly reporting on its reserves.

On Monday, Jewel announced in a Twitter post that it would release a Polygon-based stablecoin dubbed Jewel USD (JUSD). It will keep a reserve ratio of at least 1:1 with the USD. This means that for every USD in circulation, there will be exactly $1 in the bank’s reserves to back it up. 

Additionally, the bank has committed to monthly and quarterly reporting on the status of its stablecoin reserves and regular audits of those reserves.

Jewel will also use the Polygon ecosystem to power future stablecoin-based payment solutions for businesses and consumers:

“Our relationship with Polygon Enterprises helps power a major portion of our lengthy stablecoin infrastructure, which offers speed, bank safety, and security to stablecoins.”

Chance Barnett, founder and chairman of Jewel Bank

Jewel Bank became the first digital asset bank in Bermuda in June after receiving complete banking and virtual asset business permits from Bermuda Monetary Authority. The bank intends to aid Bermuda’s digitalization while providing local retail banking solutions.