The Government of Bermuda has announced plans to transform the island into what it describes as the world’s first fully on-chain national economy, partnering with Circle and Coinbase to deploy digital asset infrastructure across government, businesses, and consumers, according to its press release.
The initiative was unveiled Monday at the World Economic Forum Annual Meeting in Davos, Switzerland. Under the plan, Circle and Coinbase will provide enterprise-grade digital asset tools to the Bermudian government, local banks, insurers, small and medium-sized businesses, and residents. The companies will also support nationwide digital finance education and technical onboarding programs.
An on-chain economy, as defined by the partners, would rely on digital assets as everyday financial infrastructure. For Bermuda, a small and highly entrepreneurial economy, traditional payment rails have long imposed higher costs and limited flexibility. Being grouped alongside Caribbean and other island jurisdictions often raises fees and restricts access to onshore payment processors, which squeezes already thin merchant margins.
Stablecoins positioned as an alternative to costly payment rails
Central to the initiative is the use of stablecoins, particularly Circle’s USDC, as a medium for fast, low-cost, dollar-denominated payments. Several live examples already operate in the Bermudian market, allowing merchants and individuals to transact locally while meeting compliance obligations.
The announcement said,
"With USDC, merchants can accept fast, low-cost, dollar-denominated payments."
It also pointed to early pilots that have made transactions easier and helped local businesses.
The government said digital finance provides an opportunity for a new model that keeps economic value circulating locally while offering greater access to global finance through modern digital wallets.
Built on early regulatory groundwork
Bermuda’s move builds on years of regulatory positioning. In 2018, the country became the first jurisdiction to introduce a comprehensive digital asset framework through the Digital Asset Business Act. Circle and Coinbase were among the first global firms licensed under the regime and have since expanded alongside the island’s digital finance ecosystem.
The relationship deepened in recent years. As far back as 2019, Bermuda partnered with Circle to allow tax payments in USDC and tested its own stablecoin in 2020. Coinbase received a license from the Bermuda Monetary Authority in 2023 as part of its global expansion and currently operates derivatives offerings outside the United States through a Bermuda-based platform, according to prior disclosures. Discussions around the current initiative began at the Bermuda Digital Finance Forum 2025.
Public-private collaboration emphasized by the government
Premier E. David Burt framed the transition as an extension of Bermuda’s long-standing approach to financial innovation.
“Bermuda has always believed that responsible innovation is best achieved through partnership between government, regulators, and industry,” Burt said. “With the support of Circle and Coinbase, two of the world’s most trusted digital finance companies, we are accelerating our vision to enable digital finance at the national level. This initiative is about creating opportunity, lowering costs, and ensuring Bermudians benefit from the future of finance.”
Government agencies are expected to begin piloting stablecoin-based payments, while financial institutions integrate tokenization tools. Residents will also participate in nationwide digital literacy programs aimed at improving access and understanding.
Momentum from prior on-chain pilots
The announcement follows a milestone at the Bermuda Digital Finance Forum 2025, where the government, Circle, and Coinbase executed a USDC airdrop that distributed 100 USDC to every attendee for use with newly onboarded local merchants. Since then, additional Bermudian businesses have begun accepting digital payments, and local financial institutions have expanded their use of stablecoins and tokenized finance, according to the government.
Those efforts are set to expand at the Bermuda Digital Finance Forum 2026, scheduled for May 11-14. The government said the event will include broader business participation, a larger consumer stimulus, and deeper engagement across the financial services sector.
Industry leaders frame Bermuda as a test case
Circle CEO Jeremy Allaire described Bermuda as a model for national-scale blockchain adoption.
“Bermuda has been a global pioneer in digital asset regulation and continues to demonstrate what responsible blockchain innovation looks like at a national scale,” Allaire said. “We are proud to deepen our engagement as Bermuda empowers people and businesses with USDC and onchain infrastructure.”
Coinbase CEO Brian Armstrong highlighted the role of regulatory clarity.
“Coinbase has long believed that open financial systems can drive economic freedom,” Armstrong said. “Bermuda’s leadership shows what’s possible when clear rules are paired with strong public-private collaboration.”
An aspirational but voluntary transition
The government said the initiative remains non-exclusive and aspirational, with no mandatory requirement for residents or businesses to adopt on-chain tools. Officials framed the transition as a gradual shift that prioritizes inclusion, resilience, and competitiveness.
“The transition to an on-chain economy is expected, over time, to deliver tangible benefits for residents and businesses,” the announcement said, citing lower transaction costs and improved access to global finance.
Jordan V.
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