Jewel Bank, Bermuda’s first new bank in more than 20 years, is once again promoting plans to launch digital banking and stablecoin services after years of delays and regulatory limbo.

The renewed push comes after Singapore-based, Nasdaq-listed Genius Group announced it had acquired a 9.9 per cent stake in the Bermudian-licensed institution through an $8 million transaction tied to plans for stablecoin issuance and digital asset infrastructure.

In a statement issued Monday, Genius Group described Jewel as “Bermuda’s only dual-licensed digital bank”, pointing to its full banking licence and Class F Digital Asset Business Act licence from the Bermuda Monetary Authority.

The companies said they plan to develop a United States dollar-backed stablecoin known as JUSD and position Jewel as a regulated digital banking platform tied to the growing stablecoin market following passage of the Guiding and Establishing National Innovation for US Stablecoins Act in the US last year.

However, Jewel’s website states that the bank is “not yet operational and does not offer banking and digital assets services at this time”.

That disclaimer remains in place nearly four years after Jewel initially projected it would open.

Jewel received its banking and digital asset licences from the BMA in June 2022 and was hailed by David Burt, the Premier and Minister of Finance, as a milestone for Bermuda’s fintech sector.

At the time, Mr Burt said the bank would provide services including digital asset custody, crypto-collateralised lending, fiat currency ramps and stablecoin issuance.

In 2023, Jewel chairman Chancellor Barnett said the bank expected to launch in the first quarter of that year after missing an earlier September 2022 target.

But the company later acknowledged it was still awaiting final regulatory approval to begin operations.

Nick Lepetsos, then chief executive, told The Royal Gazette in July 2023 that while Jewel had received its banking and DABA licences, it had not yet received final approval to launch.

In May 2024, Mr Barnett said the company remained in a “post-licence period” and was still working towards regulatory approval to open the bank.

“We are not closing the company and we are working through our plans in this post-licence period towards regulatory approval to open the bank in the future,” he said at the time.

The latest investor presentation marks the bank’s most ambitious public push in months.

Genius Group said Jewel was developing the proposed JUSD stablecoin, “Jewel Settle” digital settlement infrastructure, banking-as-a-service capabilities and digital asset custody and payments services.

The release described the stablecoin market as potentially reaching between $1.9 trillion and $4 trillion by 2030.

Roger James Hamilton, founder and CEO of Genius Group, said in a press statement that the company saw an opportunity “at the intersection of [artificial intelligence] education and regulated digital banking”.

He added: “The Jewel Bank presentation shows how we are entering the $1.9 trillion to $4 trillion stablecoin market through a fully-licensed digital bank.”

American Ventures, which led the transaction, is affiliated with Dominari Holdings, whose advisers and shareholders include Donald Trump Jr and Eric Trump, according to public Securities and Exchange Commission filings. Genius Group has stated that no member of the Trump family has any direct role or influence over the company.

The companies suggested Jewel’s dual-licensing structure could position it as a future regulated stablecoin issuer.

However, neither company stated whether the proposed JUSD stablecoin has received regulatory approval from the BMA. Questions also remain about Jewel’s operational status.

The announcement also comes as Bermuda keeps refining its approach to digital assets, tokenised finance and stablecoin regulation, areas that have developed rapidly since Jewel first received its licences in 2022.

As of yesterday, the bank’s website continued to state that it was not operational.

Mr Lepetsos, who was CEO as recently as May 2024, is no longer associated with the bank on LinkedIn. No CEO was listed on LinkedIn, where Mr Barnett is listed as founder and chairman, based in Santa Monica, California.

The Gazette has contacted Jewel Bank, Genius Group and the BMA.