Jewel Bank to issue stablecoin on Polygon

The Bermuda-based Jewel Bank will issue a dollar-pegged stablecoin, Jewel USD (JUSD), on the Polygon blockchain.

Jewel Bank leverages the Polygon ecosystem for stablecoin-based payment solutions backed by bank deposits.https://t.co/xHiKzxVazn

— 💎 Jewel Bank (@JewelBermuda) December 12, 2022

According to the statement, the institution will maintain a reserve ratio of at least 1:1 for the stablecoin and will publish a reserve report monthly.

“Our partnership with Polygon helps to secure a key part of our long-term stablecoin infrastructure, delivering bank-grade reliability, speed and security,” said Jewel Bank founder and chairman Chans Barnett.

The company plans to develop, on the ecosystem’s blockchain platform, solutions for commercial and retail payments in JUSD.

In July Jewel Bank received a digital bank license from the Bermuda Monetary Authority.

At the time, Barnett said the crypto industry outside the United States needs institutional banking infrastructure to provide liquidity, reliability and scalability.

“Jewel Bank will be a bridge between the traditional fiat system and new channels for digital assets, to serve large payment volumes and the needs of major global clients, including cryptocurrency exchanges, including through stablecoin-based solutions,” he stressed in July.

In the United States, the FDIC Chair Martin Gruenberg has expressed caution about the use of ‘stablecoins’ in payments.

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