Institutions in Bermuda will soon be able to trade real-time settlements using a stablecoin with a 1:1 peg to the United States dollar. Called Jewel USD, the first stablecoin to be released in the territory is powered by the Polygon blockchain.
This would enable transactions between wallets available to institutional clients. In the future, the bank plans to use the Polygon ecosystem for commercial and retail stablecoin-based payment solutions, including transactions between institutions and businesses and payments between individuals.
Twenty-five stablecoins are currently traded on the Polygon blockchain, including a synthetic euro token, a Yen-pegged Japanese stablecoin and a South African stablecoin pegged 1:1 with the South African rand.
Although an official launch date has not been set, the bank said it should happen within the next few months. According to Jewel, the stablecoin‘s operations and its reserves will be subject to bank-level audits and regulatory oversight, with updates on a monthly and quarterly basis.
“The stablecoin is directly issued by the bank, not a lesser regulated entity that doesn’t directly hold USD fiat deposits/reserves the way a bank can.
