Bermuda-based Jewel Bank said Monday it is issuing a fully backed stablecoin called Jewel USD (JUSD) that can be accessed through the Polygon network.
In a press release, Jewel said JUSD will maintain a reserve ratio with a minimum of 1:1 with the U.S. dollar, ensuring the bank will always have funds in its reserves to support each JUSD in circulation. The bank said it will also conduct regular audits of its stablecoin reserves, and will provide reports on a monthly and quarterly basis.
Given the recent turmoil surrounding the fall of crypto exchange FTX, bank-issued stablecoins, which are usually pegged to a fiat currency, could offer the market some stability for those that are fearful of the volatility of cryptocurrencies. Audits of major exchanges, such as the recent proof of reserves report for Crypto.com, have been released in order to provide some confidence that clients' assets are fully backed one to one.
Jewel’s partnership with Polygon will mean the blockchain will be used for JUSD transactions, and the bank will leverage the Polygon ecosystem for future commercial and retail stablecoin-based payment solutions.
“Our partnership with Polygon Companies helps power a key part of our long-term stablecoin infrastructure, which brings bank-grade safety, speed, and security to stablecoins,” Jewel Bank’s founder and chairman, Chance Barnett, was cited as saying in the release.
In June, Jewel Bank received its full bank and digital asset business licenses from the Bermuda Monetary Authority, becoming the country’s first digital asset bank.
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