The Government of Bermuda is moving to modernize its financial system, positioning a bermuda onchain economy strategy at the center of a broader digital transformation agenda.
Government outlines plan for nationwide blockchain infrastructure
The Government of Bermuda has announced plans to develop a fully onchain national economy. The plan was unveiled during the World Economic Forum annual meeting in Davos, signaling a global stage for the initiative. Bermuda will work with Coinbase and Circle to deploy digital asset infrastructure nationwide across both public and private sectors.
The program is aimed at government operations, financial institutions, businesses, and consumers. According to officials, the emphasis is on payments, access, and efficiency. Moreover, the announcement places Bermuda among the few governments testing blockchain at a national scale, rather than through isolated pilots.
The strategy responds to long-standing constraints faced by island economies. Traditional payment rails often create high costs and settlement delays, especially for cross-border flows. Limited access to onshore banking services has also pressured local merchants. As a result, officials see onchain systems as a practical alternative to legacy infrastructure, arguing that digital assets could improve competitiveness and liquidity.
Stablecoin payments mark first phase of the rollout
The initial rollout centers on stablecoin-based payments using USDC. Government agencies will pilot these payments for select transactions, testing how public services can integrate blockchain-based settlement. However, the authorities are not forcing any institution or resident to adopt the new tools at this stage.
Several local businesses already accept USDC across retail and services. This early adoption followed a stablecoin distribution at the Bermuda Digital Finance Forum in May 2025. Merchants used those funds with newly supported payment tools, which helped demonstrate how recurring digital payments could function in practice.
Last year, Stripe launched USDC subscription payments via Base and Polygon for US firms, simplifying recurring crypto transactions. That said, Bermuda is focusing on domestic use cases, though global experiments provide important reference points for design and risk assessment.
Since then, additional businesses have integrated digital wallets and payment systems. In July, Bitget wallet partnered with Mastercard to launch direct access to digital wallets through crypto cards, illustrating how card networks can bridge traditional and blockchain rails. Financial institutions on the island have also expanded stablecoin usage in their operations.
Banks and insurers are preparing to test tokenization tools. These tools may support settlement and internal financial processes, including treasury management and claims handling. Moreover, officials said the pilots will inform wider adoption and help regulators refine supervisory practices.
Onboarding support will be provided to small and medium-sized businesses, which often struggle with payment costs and access to banking. Compliant digital wallets will give consumers access to services linked to the new infrastructure. The participation will be voluntary for residents and businesses. During the rollout, officials stressed flexibility to avoid disrupting existing payment habits.
Education and technical onboarding broaden participation
Alongside payments, the initiative includes nationwide digital finance education. Residents will receive guidance on digital wallets, transaction security, and basic risk management. The government said education reduces adoption risks and supports informed decision-making by individuals and firms.
Technical onboarding will support users and institutions that decide to participate. Coinbase and Circle will provide enterprise-grade infrastructure for government departments and private firms, including secure wallets, settlement rails, and developer tools. Furthermore, the companies will assist with compliance processes aligned with Bermuda’s existing regulatory framework.
Officials said this support will speed implementation while keeping oversight standards intact. Onchain infrastructure may reduce reliance on intermediaries, particularly for cross-border payments. Faster settlement could lower transaction costs, and authorities expect efficiency gains to benefit both merchants and consumers over time.
The government aims to keep economic value circulating locally, rather than losing margin to overseas intermediaries. In this context, the bermuda onchain economy initiative is framed as part of a broader strategy to strengthen resilience, diversify financial services, and attract innovation-focused businesses.
Regulatory framework underpins long-term digital asset strategy
Bermuda’s digital asset plans build on earlier regulatory efforts. The government passed the Digital Asset Business Act in 2018. This framework established licensing and oversight standards for digital asset businesses operating from the jurisdiction. As a result, regulatory clarity attracted early interest from global firms that required predictable rules.
Coinbase and Circle were among the first licensed companies under this regime. Coinbase currently operates derivatives services from Bermuda, leveraging the local framework to serve institutional and professional clients. Officials said regulatory certainty remains a strategic advantage as competition between jurisdictions for digital asset business intensifies.
The partnership with Coinbase and Circle is non-exclusive, leaving room for Bermuda to work with additional providers in the future. Moreover, policymakers view a multi-partner model as a way to avoid concentration risk and encourage competition in infrastructure services.
Global policy debates continue to influence the digital asset sector. Stablecoins and tokenized assets remain key regulatory topics, especially regarding reserve quality, prudential rules, and consumer protection. Industry leaders and policymakers discussed these issues in Davos, highlighting divergent approaches between jurisdictions.
Bermuda’s initiative reflects broader government interest in blockchain-based financial infrastructure, while attempting to maintain strong supervision. That said, the authorities emphasize that adoption by residents and firms will remain optional, relying on incentives and demonstrable benefits rather than mandates.
In summary, Bermuda is using its established regulatory framework, international partnerships, and phased stablecoin pilots to test whether a fully onchain national economy can cut costs, improve access, and keep more value within its borders.