Jewel, a proposed digital asset bank in Bermuda, has been added as one of the clients to Anchorage’s digital asset custodial services. The yet to be approved digital asset bank announced on September 16, noting that the move will be beneficial to crypto companies based on the island.
Anchorage, licensed in the U.S, significantly increases the value proposition of Jewel digital asset bank as a prospectus entity in the Bermuda crypto banking space. Jewel’s chairman and founder, Chance Barnett said,
“Our relationship with Anchorage enables us to serve our clients with the rigorous security and product standards needed for bank-level safety, service, and compliance.”
Leveraging Anchorage as its crypto custodian will help Jewel run operations smoothly; the target functions include the provision of checking accounts and other crypto banking services to firms in this niche. Consequently, Anchorage is set to play a fundamental role in the custody of digital assets entrusted to Jewel by its clients.
It is quite noteworthy that Anchorage’s custodial services are relatively liquid, given that the firm does not use cold storage. Jewel is optimistic that this position will further facilitate its product scaling to feature lending services for crypto-oriented entities. The company’s Chief Revenue Officer, Jill Richmond, added that they intend to increase operations to other jurisdictions as well,
“We are at the forefront of being able to service global markets … We have existing letters of intent at the moment with a number of the top Tier I, Tier II digital asset exchanges.”
Bermuda’s Progressive Blockchain and Crypto Approach
While Jewel will probably be the first approved digital asset bank in Bermuda, the island has been a leader in the blockchain adoption and regulatory space. Some notable milestones include developing a blockchain identification system in collaboration with the Shyft network and Perseid. The small island is also becoming a crypto business hub with exchanges shifting operations from stiff regulatory jurisdictions like the U.S.
Interestingly, Bermuda’s government is also one of the few authorities that accept tax payments in crypto, the USDC coin, to be specific. If Jewel is given the go-ahead, the crypto payment options will probably scale based on this digital asset bank’s ability to spur integration by acting ‘as the banking bridge between digital assets and traditional fiat currency (USD) held in banking accounts.’