DAVOS, Switzerland, CMC – The Bermuda government has used the World Economic Forum Annual Meeting to announce its plans to transform the British Overseas Territory into the world’s first fully on-chain national economy with support from Circle and Coinbase companies
Circle and Coinbase say they intend to provide their digital asset infrastructure and enterprise tools to the Bermuda government, local banks, insurers, small and medium-sized businesses, and consumers. The companies also plan to support nationwide digital finance education and technical onboarding.
A Bermuda government statement said that an on-chain economy means using digital assets as an everyday financial infrastructure.
It said that, for a country like Bermuda, a highly entrepreneurial economy with thousands of local businesses, traditional payment rails are expensive and restrictive. Being classified alongside Caribbean and other island jurisdictions, onshore payment processors, and local fiat banking rails drive up fees and squeeze already-thin merchant margins. Digital finance provides an opportunity for a new model.
With USDC, a stablecoin issued by Circle and pegged to the United States dollar, distinct from a central bank digital currency, merchants can accept fast, low-cost, dollar-denominated payments.
“There are now multiple live examples in the Bermudian market, demonstrating how on-chain digital payments allow individuals to transact locally, support economic activity, and meet compliance obligations in a modern, efficient way.”
The Bermuda government statement said the announcement builds on the island’s leadership in digital asset regulation.
In 2018, Bermuda became one of the first jurisdictions 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 expanded alongside the island’s growing digital finance ecosystem.
The statement said that the continued partnership follows a significant milestone at the Bermuda Digital Finance Forum 2025, where the three partners executed an airdrop of USDC, distributing 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.”
The Bermuda Digital Finance Forum 2026, taking place May 11–14, will expand these efforts through broader business participation, greater consumer stimulus, and deeper engagement across the financial services sector.
Premier David Burt said that Bermuda’s approach is anchored in a collaborative model among government, the regulator, and industry, designed to enable responsible innovation at scale.
“Bermuda has always believed that responsible innovation is best achieved through partnership between government, regulators, and industry,” said Premier Burt.
“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.”
The transition to an on-chain economy is expected to deliver tangible benefits for residents and businesses over time. Benefits include lower transaction costs and greater access to global finance through modern digital wallets and infrastructure that keep economic value circulating locally.
“Bermuda has been a global pioneer in digital asset regulation and continues to demonstrate what responsible blockchain innovation looks like at a national scale,” said Circle Co-Founder, Chairman, and Chief Executive Officer, Jeremy Allaire.
“We are proud to deepen our engagement as Bermuda empowers people and businesses with USDC and on-chain infrastructure.”
Coinbase chief executive officer Brian Armstrong said his company has long believed that open financial systems can drive economic freedom.
“Bermuda’s leadership shows what is possible when clear rules are paired with strong public-private collaboration. We are excited to support Bermuda’s transition toward an on-chain economy that empowers local businesses, consumers, and institutions.”
The government statement said that government agencies will begin piloting stablecoin-based payments, financial institutions will integrate tokenization tools, and residents will participate in nationwide digital literacy programs, laying the foundation for a more inclusive, competitive, and resilient national economy.
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