Bermuda has unveiled a national initiative to integrate blockchain into every layer of its financial system as it hopes to become the world’s first fully on-chain economy.

The plan was announced during the World Economic Forum annual meeting in Davos, with support from crypto giants Circle and Coinbase, who will provide the infrastructure and tools necessary to bring the strategy to life.

According to the announcement, the project will equip key sectors, including government agencies, banks, insurers, and small to mid-sized enterprises, with the ability to adopt tokenized payment systems and digital asset infrastructure. 

Circle and Coinbase are also committing to large-scale education efforts that will help onboard everyday Bermudians to these new systems.

Stablecoins like USDC are expected to play a key role in this initiative, which Circle described as a vehicle for faster and more affordable commerce.

“Fast, low-cost, dollar-denominated payments” will help local merchants bypass the traditionally expensive and often limiting fiat payment rails that island jurisdictions face.

Bermuda’s business community, which includes thousands of entrepreneurial firms, has long contended with high fees and constrained access to onshore processors.

Officials say blockchain-based tools can alleviate these pain points.

Premier David Burt has emphasised the national scope of the initiative, describing it as a chance to modernise the island’s financial landscape.

“This initiative is about creating opportunity, lowering costs, and ensuring Bermudians benefit from the future of finance,” he said.

According to the partners, the transition is expected to reduce dependency on intermediaries, expand financial access, and retain more value within the local economy.

While no firm rollout timeline was included, pilot programs are already taking shape. 

Government bodies are preparing to test stablecoin-based payments, financial institutions will begin integrating tokenization tools, and a nationwide digital literacy campaign is being launched to build familiarity among residents.

Some groundwork has already been laid, as in 2025, a USDC airdrop at the Bermuda Digital Finance Forum offered a glimpse into real-world adoption. Following that event, a number of local businesses began accepting digital payments.

Bermuda’s regulatory head start played a major role in setting the stage for this initiative to take shape. 

The Digital Asset Business Act, passed in 2018, gave the island a comprehensive framework for licensing crypto firms. 

Today, more than 40 virtual asset service providers are registered with the Bermuda Monetary Authority.

Circle, which was among the first, received its full Class F license in July 2019 and has since expanded its footprint on the island.

Coinbase followed with the same license in 2023, opening an international hub and launching derivatives offerings for non-US clients.

As previously reported by Invezz, last year, the Bermuda Monetary Authority’s insurance carrier, Realm Insurance, introduced several products tailored to addressing the risks associated with the cryptocurrency sector.

Bermuda was also the first to begin accepting tax payments, fees, and payments for government services using the USDC stablecoin.

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