Mukesh Ambani-led Reliance Jio Makes Surprise Entry Into the Web3 and Blockchain Universe by Launching JioCoin, a Digital Token That Will Be Issued on the Polygon Labs Network

The development comes following Reliance Industries subsidiary Jio Platforms' (JPL) strategic partnership with Polygon Labs, a homegrown developer arm of Polygon Protocols for its Web3 and blockchain debut.

Mukesh Ambani-led Reliance Jio has officially forayed into the Web3 and blockchain domain with the launch of JioCoin, a digital token to be issued on the Polygon Labs network. The Bengaluru-based blockchain infrastructure company will create innovative Web3 services for Reliance Jio’s existing 450-plus million customers.

The development comes following Reliance Industries subsidiary Jio Platforms' (JPL) strategic partnership with Polygon Labs, a homegrown developer arm of Polygon Protocols for its Web3 and blockchain debut. Both the companies have been closely working together for more than a year to offer Web3 and blockchain solutions to Jio users.

The partnership aims to add Web3 capabilities to some of the existing applications and services owned and operated by JPL by leveraging Polygon’s blockchain solutions to create innovative Web3 services for Jio’s existing 450+ million customers.

"Joining forces with Polygon Labs marks a significant milestone in Jio's journey towards digital excellence. We are excited to explore the boundless possibilities of Web3 and bring unparalleled digital experiences to our users," says Kiran Thomas, CEO, JPL.

Polygon's founder Sandeep Nailwal has also expressed enthusiasm about the partnership, stating, "This is a significant step forward for web3 adoption in India. We look forward to working with Jio as they introduce Web3 to their millions of customers."

Let's try to understand what exactly is JioCoin:

What's JioCoin?

JioCoins are digital coins, which will be issued by the Polygon blockchain for internet browsing via Jiosphere, a web browser owned by Jio Platforms. Users can earn JioCoins by using different mobile or internet-based apps on the Jio Platforms web browser using their Indian mobile numbers.

This means the users of Reliance Jio can earn Web3 tokens or JioCoins by using the JioSphere browser. Once you start using JioSphere, based on your web activity, Jiocoins will start appearing in your Polygon wallet. The company has not yet officially announced how users will be able to redeem or use these JioCoins. However, they expect Reliance Jio to leverage JioCoins for different use cases.

Some expect Jio to use JioCoin as internal currency within its ecosystem of companies, while others say the company could launch a "redemption" or "reward" programme. If the user base increase, this could push Jiosphere web browser to emerge as a competitor to the likes of Google Chrome or Mozilla Firefox.

What are the benefits of JioCoin?

With this tie-up, experts say Polygon will see a significant boost to its credibility as a blockchain network in India, which could lead to a vast number of Jio users joining the Polygon's network. This could also encourage more such companies with a huge user base, including Airtel and Vodafone Idea, etc., to join Polygon's or similar blockchain networks in India. The tie-up is a big deal for Polygon, which will leverage Jio's use base to create value via its platform.

Will there be a regulatory impact?

Reliance Jio's launching of JioCoin could see two of the top regulators -- RBI and SEBI -- keeping a close watch on the development, which will also decide how JioCoin will be taxed. It will also be interesting to see how income tax authorities treat JioCoin. "Reliance Jio’s involvement could be a game-changer in India’s regulatory landscape. It may push the government towards creating clear, favourable crypto regulations, similar to what we've seen in other countries like El Salvador. Jio could lead a movement to bring mainstream crypto adoption to India," Rohit Singh, who's a SEBI-registered research analyst, wrote on X.

What will be the impact on the crypto world?

Jio Platform launching JioCoin on Polygon is being touted as a significant development in the crypto world. "The crypto world has 500 million users, and Jio has 470 million users. Jio can bring 400 million people on-chain in the next few months. Fifteen years to get 500 million, and Jio alone can achieve this in the next few months. It is a big moment for all of us in the Web3 space," Kashif Raza, Founder, Bitinning, a Bitcoin education platform wrote on X.