Bermuda's Bold Move: Partnering with Coinbase and Circle to Build the World's First 'Fully Onchain' Economy

The Government of Bermuda has announced a groundbreaking initiative to transform the island into a 'fully onchain' national economy, in partnership with crypto giants Coinbase and Circle. This ambitious plan, unveiled at the World Economic Forum in Davos, aims to deploy digital asset infrastructure across government agencies, businesses, and consumers, positioning Bermuda as a leader in blockchain-based financial innovation.

A Vision for Onchain Integration

Bermuda's strategy focuses on integrating blockchain-based payments and financial tools at a national level. Coinbase and Circle will provide the necessary digital asset infrastructure and enterprise tools to support this transformation, targeting local banks, insurers, small and medium-sized businesses, and consumers. The partnership also includes plans for nationwide digital finance education and technical onboarding, ensuring widespread adoption and understanding.

Discussions for this collaboration began last year at the Bermuda Digital Finance Forum 2025, highlighting a long-term commitment to digital asset integration. An onchain economy, as described by the partners, would rely on digital assets as everyday financial infrastructure, addressing the challenges faced by Bermuda's small, entrepreneurial economy.

Addressing Economic Challenges with Stablecoins

Traditional payment rails in Bermuda are often costly and restrictive, with high fees and limited access to onshore payment processors and fiat banking services. This can squeeze merchant margins and hinder economic growth. Stablecoins, particularly Circle's USDC, are central to the initiative, enabling merchants to accept fast, low-cost, dollar-denominated payments. Several live examples of USDC usage are already operating in the Bermudian market, demonstrating its practical benefits.

Premier E. David Burt emphasized the initiative's goals: "This initiative is about creating opportunity, lowering costs, and ensuring Bermudians benefit from the future of finance."

Building on Regulatory Foundations

Bermuda has been a pioneer in digital asset regulation, introducing the Digital Asset Business Act in 2018—one of the first comprehensive regulatory frameworks for digital assets globally. Circle and Coinbase were among the first firms licensed under this regime, with Coinbase currently offering derivatives outside the U.S. through a Bermuda-based platform.

Momentum for the onchain economy initiative increased last year at the Bermuda Digital Finance Forum, where the government, Coinbase, and Circle executed an onchain USDC airdrop, distributing 100 USDC to each 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.

Scaling Up with Future Plans

The efforts are expected to scale further at the Bermuda Digital Finance Forum 2026, scheduled for May 11–14. The event will include broader business participation, a larger consumer stimulus, and deeper engagement across the financial services sector. As part of the new initiative, government agencies will pilot stablecoin-based payments, financial institutions will integrate tokenization tools, and residents will participate in nationwide digital literacy programs.

These steps are intended to lay the foundation for a more inclusive, competitive, and resilient national economy built on onchain infrastructure. The transition is expected to deliver tangible benefits, including lower transaction costs and greater access to global finance through modern digital wallets, keeping economic value circulating locally.

A Non-Exclusive and Aspirational Approach

The partnership with Coinbase and Circle is non-exclusive, allowing Bermuda to collaborate with other firms and technologies. The onchain economy initiative is described as aspirational, with no mandatory requirements for residents or businesses to adopt onchain tools, ensuring flexibility and voluntary participation.

In a related development, Coinbase today announced the launch of its Coinbase Custom Stablecoins, a 'stablecoin-as-a-service' product that allows businesses to create custom-branded stablecoins backed 1:1 by a flexible mix of USDC and other U.S. dollar stablecoins. Coinbase highlighted that stablecoins have become "the backbone of the onchain economy," enabling $9 trillion in adjusted annual transaction volume in 2025 alone.