Bermuda Launches National Blockchain Economy Initiative With Coinbase and Circle

Bermuda has unveiled a nationwide initiative to embed digital asset infrastructure into its economy through strategic partnerships with cryptocurrency exchange Coinbase and stablecoin issuer Circle. The program is designed to modernize government services, financial institutions, businesses, and consumer payments by leveraging blockchain-based systems alongside island-wide education efforts.

Premier E. David Burt introduced the initiative on Monday at the World Economic Forum in Davos, outlining how digital asset tools will be rolled out across public agencies, banks, insurers, and small enterprises. The plan also includes training programs to help residents and organizations adopt blockchain technology effectively.

Conversations around the partnership began at the Bermuda Digital Finance Forum in May 2025. Rather than treating digital assets as an add-on, the framework positions them as foundational financial infrastructure, addressing long-standing cost inefficiencies common to island economies.

Bermuda faces disproportionately high payment processing fees due to its regional classification alongside Caribbean nations, which limits access to major financial networks and increases operating costs for local merchants. Government officials highlighted these challenges as a key driver behind the shift toward blockchain-based payments.

USDC, Circle’s U.S. dollar–backed stablecoin, will function as the primary payment asset within the ecosystem. By using USDC, businesses can benefit from faster settlements and lower transaction fees compared to traditional card processors, although specific merchants participating in the rollout have not yet been named.

This initiative builds upon Bermuda’s progressive digital asset regulations established under the Digital Asset Business Act of 2018. The law introduced a structured licensing framework for crypto companies, with Coinbase and Circle among the first to receive regulatory approval.

During last year’s Digital Finance Forum, the government, Coinbase, and Circle distributed 100 USDC to attendees to spend at participating local businesses. Since then, more merchants have adopted digital payment options, financial institutions have expanded stablecoin usage, and tokenization of real-world assets has gained momentum.

As part of the national deployment, government departments will pilot stablecoin-based payment systems. Banks will introduce asset tokenization services, while residents will have access to educational programs focused on digital wallets and blockchain transaction fundamentals.

Officials expect the initiative to lower transaction costs and strengthen Bermuda’s connectivity to global financial markets. By reducing reliance on offshore payment intermediaries, the framework aims to keep more economic value circulating within the local economy.

Sources familiar with the arrangement noted that the partnerships are non-exclusive, allowing Bermuda to collaborate with additional technology providers in the future. Participation in the on-chain economy remains optional, giving businesses and individuals the freedom to continue using traditional financial services if preferred.

Separately, Coinbase recently launched its Custom Stablecoins offering, enabling organizations to issue branded stablecoins backed by USDC and other dollar-pegged assets without building their own infrastructure. The company reported that stablecoins processed approximately $9 trillion in transaction volume during 2025.

Source: Coinmarketcap

Voice of Osiz

At Osiz, we see Bermuda’s launch of a national blockchain economy in partnership with Coinbase and Circle as a strong signal of growing institutional confidence in digital assets. This initiative reflects how forward-thinking governments are positioning blockchain not as an experiment, but as core financial infrastructure to improve efficiency, transparency, and global connectivity. By leveraging regulated stablecoins and established crypto platforms, Bermuda is addressing real-world challenges such as high transaction costs and limited financial access. As regulatory clarity and public–private collaboration increase, we believe similar models will shape the future of national digital economies. At Osiz, we closely track these developments to help businesses and institutions build compliant, scalable blockchain solutions aligned with global adoption trends.