Bermuda Partners with Coinbase & Circle to Build a Fully Onchain Economy

The Government of Bermuda has announced a strategic partnership with Coinbase & Circle to develop what it describes as a “fully onchain” national economy, positioning digital assets as core financial infrastructure across government, businesses, & consumers. The initiative was announced on January 19 during the World Economic Forum annual meeting in Davos, Switzerland.

Under the partnership, Coinbase & Circle will provide blockchain-based payments infrastructure, enterprise tools, & technical support to Bermuda’s public sector, local banks, insurers, small & medium-sized enterprises, & residents.

• Stablecoins at the Center of Public Finance Experiments
• Building on Early Digital Asset Regulation
• Education, Tokenization & Nationwide Onboarding
• Looking Ahead to 2026

Stablecoins at the Center of Public Finance Experiments

A central pillar of the initiative is the expanded use of stablecoins, particularly USDC, for everyday transactions. The government plans to pilot stablecoin-based payments across select government agencies, while encouraging local merchants to adopt USDC for fast, low-cost, dollar-denominated payments.

According to the announcement, several Bermudian businesses are already accepting stablecoins, citing lower transaction fees & faster settlement compared to traditional payment rails. For small island economies like Bermuda, legacy financial infrastructure often comes with higher costs, restricted access to payment processors, & dependency on offshore banking channels.

“This initiative is about creating opportunity, lowering costs, & ensuring Bermudians benefit from the future of finance,” Premier E. David Burt said in a statement.

Building on Early Digital Asset Regulation

The new effort builds on Bermuda’s early move into digital asset regulation. In 2018, the country enacted the Digital Asset Business Act, one of the world’s first comprehensive legal frameworks governing digital assets.

Both Coinbase & Circle were among the earliest global firms licensed under the regime, with Coinbase currently operating a derivatives platform from Bermuda for non-U.S. markets. Momentum accelerated in 2025 at the Bermuda Digital Finance Forum, where the government, Coinbase, & Circle conducted an onchain stablecoin airdrop, distributing digital dollars to attendees for use with newly onboarded local merchants.

Since then, additional businesses & financial institutions have expanded their use of stablecoins & tokenized finance tools.

Education, Tokenization & Nationwide Onboarding

Beyond payments, the partnership aims to support broader financial innovation. Financial institutions are expected to integrate tokenization & other digital finance tools, while residents will be offered nationwide digital finance education & onboarding programs.

The government emphasized that the initiative is non-exclusive & aspirational. There is no mandatory requirement for residents or businesses to adopt onchain tools, & Bermuda remains open to working with additional technology providers over time.

“These steps are intended to lay the foundation for a more inclusive, competitive, & resilient national economy,” the announcement said, citing benefits such as lower transaction costs, improved access to global finance, & infrastructure that keeps economic value circulating locally.

Looking Ahead to 2026

The initiative is expected to scale further at the Bermuda Digital Finance Forum 2026, scheduled for May 11–14. Officials said the event will feature broader business participation, a larger consumer stimulus program, & deeper engagement across the financial services sector.

Separately, Coinbase also announced the launch of its “Custom Stablecoins” product, a stablecoin-as-a-service offering that allows businesses to issue branded stablecoins backed 1:1 by USDC & other U.S. dollar stablecoins. Coinbase described stablecoins as the “backbone of the onchain economy,” noting they facilitated an estimated $9 trillion in adjusted annual transaction volume in 2025.

As governments globally explore blockchain-based financial infrastructure, Bermuda’s partnership with Coinbase & Circle places it among the most ambitious jurisdictions attempting to operationalize an onchain economy at a national level.

If you find any issues in this blog or notice any missing information, please feel free to reach out at yash@etherworld.co for clarifications or updates.

Related Articles

1. Aftermath of Coinbase Insider Breach
2. Coinbase x PayPal to Boost PYUSD Stablecoin Payments
3. Coinbase Unlocks ETH-Backed Loans: Liquidity Without Selling
4. CCI Approves Coinbase's Minority Stake Acquisition in CoinDCX
5. Coinbase CEO Flags Zero Tolerance on Insider Misconduct