Bermuda Plans to Build a Fully Onchain National Economy with Coinbase and Circle Partnership
- Bermuda plans to use blockchain payments nationwide to reduce costs and expand access for government businesses.
- Stablecoin pilots will begin with public agencies while banks, insurers and merchants test tokenization digital tools.
- Strong regulation since 2018 allows Bermuda to test onchain systems without forcing adoption by residents or firms.
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. Bermuda will work with Coinbase and Circle to deploy digital asset infrastructure nationwide.
The program is aimed at government operations, financial institutions, businesses, and consumers. According to officials, the emphasis is on payments, access and efficiency. The announcement places Bermuda among governments testing blockchain at a national scale.
The strategy responds to long-standing constraints faced by island economies. Traditional payment rails often create high costs and settlement delays. Limited access to onshore banking services has also pressured local merchants. As a result, officials see onchain systems as a practical alternative. The government said digital assets could improve competitiveness and liquidity.
Stablecoin Payments Form the First Phase
The initial rollout centers on stablecoin-based payments using USDC. Government agencies will pilot these payments for select transactions. Several local businesses already accept USDC across retail and services. This adoption followed a stablecoin distribution at the Bermuda Digital Finance Forum in May 2025. Merchants used those funds with newly supported payment tools. Last year, Stripe launched USDC subscription payments via Base and Polygon for US firms, simplifying recurring crypto transactions.
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. Financial institutions have also expanded stablecoin usage. Banks and insurers are preparing to test tokenization tools. These tools may support settlement and internal financial processes. Officials said the pilots will inform wider adoption.
Onboarding support will be provided to small and medium-sized businesses. Compliant digital wallets will provide consumers access to services. The participation will be voluntary to the residents and businesses. During the rollout, the officials stressed flexibility.
Education and Technical Onboarding Expand Access
Alongside payments, the initiative includes nationwide digital finance education. Residents will receive guidance on digital wallets and transaction security. The government said education reduces adoption risks. Technical onboarding will support users and institutions.
Coinbase and Circle will provide enterprise-grade infrastructure. These tools will support government departments and private firms. The companies will also assist with compliance processes. Officials said this support will speed implementation.
Onchain infrastructure may reduce reliance on intermediaries. Faster settlement could lower transaction costs. Officials expect efficiency gains to benefit merchants and consumers. The government aims to keep economic value circulating locally.
Regulatory Foundation Supports Long-Term Strategy
Bermuda’s digital asset plans build on earlier regulatory efforts. The government passed the Digital Asset Business Act in 2018. The framework established licensing and oversight standards. This clarity attracted early interest from global firms.
Coinbase and Circle were among the first licensed companies. Coinbase currently operates derivatives services from Bermuda. Officials said regulatory certainty remains a strategic advantage. The partnership with Coinbase and Circle is non-exclusive. Bermuda may work with additional providers.
Global policy debates continue to influence the sector. Stablecoins and tokenized assets remain key regulatory topics. Industry leaders and policymakers discussed these issues in Davos. Bermuda’s initiative reflects broader government interest in blockchain-based financial infrastructure.
