Jewel Bank launches stablecoin on Polygon

Jewel Bank, through a strategic partnership with Polygon, is launching the first bank-grade and fully guaranteed USD stablecoin for real-time settlement. 

Jewel Bank is Bermuda’s first digital asset bank approved by the Bermuda Monetary Authority (BMA). This is important news because Jewel Bank will be the first non-US bank to issue stablecoins directly against bank deposits. 

Polygon will help Jewel Bank in its stablecoin launch

All Jewel USD (JUSD) stablecoin issuances will be backed by cash deposits held in reserve, bringing guarantees and confidence through appropriate regulation to an industry that has historically lacked such features.  

In a press release, Jewel stated that JUSD will maintain a reserve ratio with a minimum of 1:1 with the US dollar, ensuring that the bank will always have funds in its reserves to back every JUSD in circulation. Jewels Bank also said it will conduct regular audits of its stablecoin reserves and provide reports on a monthly and quarterly basis.

The purpose of this important move is related to issues of trust and credibility. After the collapse of FTX, Jewel Bank wants to bring safety, speed, and regulation to the banking level. 

Jewel Bank will continue its partnership with Polygon to provide stablecoin-based retail and commercial payment solutions for transactions between institutions, businesses, and individuals. It will also continue to offer its services to Polygon’s partner ecosystem.

The collaboration enables Jewel Bank to maximize the full potential of a stablecoin through Polygon’s layer-2 Ethereum-based scaling solutions. Jewel Bank will use Polygon-based scaling solutions to facilitate real-time settlement of transactions between authorized wallets available to its institutional banking clients. 

Chance Barnett, founder and president of Jewel Bank, said in his statement:

“Our partnership with Polygon Companies helps power a critical part of our long-term stablecoin infrastructure, bringing bank-grade security, speed and protection to stablecoins.”

What is Jewel Bank?

Jewel Bank is a full-service bank for global digital asset institutions, providing services including: banking operations, fiat on- and off-ramps, crypto-collateralized lending, digital asset custody, stablecoin infrastructure, and a real-time settlement network for institutions, all via API. 

The company is led by a team of experts with deep experience in banking and FinTech. The bank is headquartered on the island of Bermuda, which through its membership in the Caribbean Financial Action Task Force (CFATF) is also a member of the Financial Action Task Force (FATF), the intergovernmental body comprising more than 200 countries that sets international standards to prevent money laundering and terrorist financing worldwide. 

The Bermuda Monetary Authority (BMA) will act as Jewel’s licensing and banking regulator upon license approval and considers the favorable status Bermuda holds within CFATF / FATF essential to the island’s ongoing economic development.

Polygon operates in every field, most recently announcing partnership with Warner Music and LGND

LGND has announced a multi-year partnership with blockchain network developer Polygon and global entertainment company Warner Music Group to create a Web3 music platform called LGND Music.

LGND Music, scheduled to launch in January 2023, is designed to be a music and collectibles platform that supports “digital collectibles from any blockchain in a proprietary player,” thus allowing users to play their digital collectibles on the go.

The partnership will allow select Warner Music Group artists to launch digital collectibles on both the app and desktop platforms. Creators will also be able to interact with their fanbase through special content and curated experiences. The platform will be built on Polygon and will offer lower gas rates and faster transactions.