Jewel Bank, Polygon to launch Bermuda’s first USD-backed stablecoin

December 15, 2022 Coin Telegraph

Bermuda

The JUSD stablecoin will allow real-time settlements for institutional investors in the territory.

Institutions in Bermuda will soon be able to trade real-time settlements using a stablecoin with a 1:1 ratio with the United States dollar, Jewel Bank's founder and chairman Chance Barnett told Cointelegraph.

Called Jewel USD (JUSD), the first stablecoin to be released in the territory is powered by the Polygon blockchain, enabling 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, businesses, and payments between individuals.

"The need for a USD real time settlement network outside of the US is significant for both fintechs and digital asset firms, so we’re filling a large gap in the market. The US has solutions like Signature Signet for real time settlement, and now Jewel Bank is providing a Bermuda-based non-US solution for the industry, and the response by clients in signing up prior to launch has been significant.", noted Barnett.

On the Polygon blockchain, 25 stablecoins are currently traded, including a synthetic Euro token, a Yen-pegged Japanese stablecoin, and a South African stablecoin pegged 1:1 with the South African Rand (ZAR).

Although an official launch date has not been set, the bank said it should happen within the next few months. According to the Jewel, the stablecoin 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. This reduces risks for stablecoin holders.", commented the executive about the risk management measures taken to issue the stablecoin. Barnett also stated:

"JUSD transactions will only be possible between permissioned clients/wallets, eliminating the ability for bad actors to use these assets for any unsanctioned activity. Jewel may seek to open up its stablecoin to non-clients in the future."

Bermuda has been working to keep its relevance as a financial jurisdiction by supporting digital assets business. In 2020, the territory announced a partnership with stablecoin platform Stablehouse to roll out a pilot program for a digital “stimulus” token, targeting both residents and merchants within the islands.

"With a plan to develop into an international center for digital assets business, in 2018 Bermuda created regulatory clarity and a legal framework for both digital assets and banking [...] Meanwhile, the US and other leading economies and their regulatory bodies have yet to provide similar clarity and holistic frameworks for digital assets and digital asset businesses.", claimed the Jewel's executive.

Bermuda Monetary Authority (BMA) granted 14 licenses for crypto firms to operate on the British island territory as of June 2022, with four of those issued in 2022, Cointelegraph reported.

Bermuda confirms crypto hub ambitions despite market downturn

June 6, 2022 Coin Telegraph

Bermuda

“We are aware of the recent devaluation in the price of cryptocurrencies and remain confident that it does not threaten the island’s ability to become a crypto hub,” said Bermuda’s minister of economy and labor, Jason Hayward.

The Bermuda government is pushing on with its ambitious plans to become a cryptocurrency hub despite the massive market downturn in 2022.

The small island territory known for its pristine pink sand beaches and attractive taxation policies has been actively expanding its crypto sector since 2017, according to Bermuda’s minister of economy and labor, Jason Hayward.

He noted on June 3 that the government remains unfazed by the recent crash caused by the collapse of the Terra ecosystem in May, as the market has weathered many storms since 2017.

Speaking with the Wall Street Journal (WSJ), Hayward pointed to the experience of the economy and local regulators in dealing with foreign business as a key factor that will help Bermuda become a crypto hub. He also bullishly stated that the crash will not hamper its plans moving forward:

“We are aware of the recent devaluation in the price of cryptocurrencies and remain confident that it does not threaten the island’s ability to become a crypto hub.”

“This industry downturn is likely to advance our goal and positively impact our long-term growth and role in this sector,” he added.

So far the Bermuda Monetary Authority (BMA) has granted a total of 14 licenses for crypto firms to operate out of the British island territory, with four of those being approved in 2022, noted Crag Swan, chief executive of the BMA.

The total list includes companies such as multi-asset-class trading firm Class T, crypto exchange Bittrex Global, USD Coin (USDC) issuers Circle Internet Financial Ltd., and crypto interest account providers BlockFi, who obtained a license in January earlier this year.

Swan highlighted, however, that the BMA is not looking to accept anyone that wants to set up shop in Bermuda and is looking at quality over quantity as part of its crypto hub ambitions.

“So obviously the persons that we want in Bermuda must be fit and proper because essentially we’re looking at maintaining the jurisdiction’s quality name,” he said.

Hayward stated that Bermuda’s licensing process is broken down into three stages: the testing license, a modified license, and finally the fully approved operating license. The testing phase usually lasts between three to 12 months but did not provide a comment on how long it takes to get fully licensed by the BMA.

Commenting on the regulatory landscape in Bermuda, the president of the Financial & International Business Association (FATF) David Schwartz, told the WSJ that the Bermuda government has been making strides in its anti-money laundering compliance initiatives since 2020, but there was still work to be done.

The Paris-based FATF sets global AML-standards, and Schwartz suggested the success of Bermuda’s crypto sector may hinge on how strongly the government oversees and regulates the companies that it offers licenses to:

“They’ve got great rules and regulations and laws, but it’s all about the implementation at the end of the day.”

Multi-asset exchange wins crypto trading license in Bermuda

July 21, 2021 Coin Telegraph

Bermuda

Bermuda Premier David Burt said that 24 Exchange’s regulatory approval is the “first license of its kind to be issued in Bermuda.”

A multi-asset class trading firm in Bermuda has secured major regulatory approval allowing it to offer cryptocurrency trading services.

Over-the-counter trading platform 24 Exchange has acquired a “Class T” digital asset business licence from the Bermuda Monetary Authority (BMA) to roll out cryptocurrency trading on its institutional-grade platform. The firm officially announced Tuesday that the new license was granted under the Bermuda Digital Asset Business Act 2018.

With the newly received license, 24 Exchange is planning to launch physical crypto trading to its institutional clients later this summer. Specializing in foreign exchange non-deliverable forwards (NDFs), or two-party cash-settled derivatives contracts, 24 Exchange also expects to introduce a trading capability with NDFs in Bitcoin (BTC) and Ether (ETH).

In order to secure the license, 24 Exchange has been working closely with the Bermuda Government’s Office of FinTech, the Bermuda Business Development Agency, as well as Bermuda Premier David Burt. The Premier reportedly highlighted that the latest regulatory approval is the “first license of its kind to be issued in Bermuda,” and that the state is looking forward to “having these innovative digital pioneers blazing new trails” in the country.

Founded in 2019, 24 Exchange is focused on providing institutional investors with diverse asset exposures 24 hours a day and at the lowest possible cost. The company intends to expand its platform’s capability in the future to include all possible assets.

“We intend to expand our platform's trading capability in the future to encompass all the other assets on our exchange – all at best available rates. 24 Exchange's unique NDF offering will significantly facilitate the institutional adoption of crypto products across the globe,” 24 Exchange CEO and founder Dmitri Galinov said.

As previously reported by Cointelegraph, Bermuda has emerged as a crypto-friendly jurisdiction in recent years, welcoming operations of multiple global crypto businesses in the country. Last October, BMA granted a “Class F” digital asset business licence to crypto exchange Bittrex Global, allowing it to offer crypto services like futures trading. Bermuda is also reportedly the first government over the world to accept Circle’s stablecoin USD Coin (USDC) for tax payments.

Bermuda