Bermuda teams up with Coinbase and Circle to build a fully onchain economy

Bermuda Takes a Bold Step Toward a Fully Onchain Digital Economy

Bermuda is positioning itself at the forefront of blockchain innovation after announcing a strategic partnership with Coinbase and Circle to pilot what officials describe as a  fully onchain digital economy. The initiative marks a significant milestone in the island nation’s long-term plan to modernize public finance, expand digital payments, and integrate blockchain infrastructure across government and financial services.

The announcement was made during the World Economic Forum Annual Meeting in Davos, where Bermuda Premier David Burt appeared alongside executives from Coinbase and Circle. The collaboration will initially focus on stablecoin payments, tokenization tools, and blockchain-based financial infrastructure powered by Coinbase’s Base network and Circle’s USDC stablecoin.

Building on Years of Crypto-Friendly Policy

Bermuda’s move into onchain finance is not a sudden experiment, but rather the result of years of deliberate regulatory planning. The country has been recognized as a crypto-friendly jurisdiction since 2018, when it passed the Digital Asset Business Act. That framework provided legal clarity for digital asset companies, enabling firms like Coinbase and Circle to establish a presence and operate under clear compliance standards.

By creating a structured regulatory environment early, Bermuda differentiated itself from many jurisdictions that struggled to balance innovation with oversight. This foundation has allowed the government to move beyond simple crypto adoption and begin exploring how blockchain technology can be embedded directly into the national economic system.

Stablecoins and Tokenization at the Core of the Pilot

The first phase of Bermuda’s onchain economy will center on stablecoin-based payments using USDC, a dollar-pegged digital asset issued by Circle. Government agencies are expected to test stablecoins for payments and settlements, while local financial institutions will experiment with tokenization tools designed to represent real-world assets on the blockchain.

According to officials involved in the project, the pilot will also include educational initiatives aimed at improving digital literacy among residents. These programs are intended to help Bermudians understand blockchain technology, digital wallets, and onchain financial services, ensuring that the transition benefits the broader population rather than a narrow group of specialists.

Premier David Burt emphasized that the initiative is about reducing costs, increasing efficiency, and creating new opportunities for citizens. He framed the project as a practical step toward making financial systems more inclusive and future-ready.

Why Coinbase and Circle Matter in This Vision

Coinbase and Circle are not simply technology providers in this partnership; they represent two of the most influential institutions in the global crypto ecosystem. Coinbase’s Base network offers a scalable blockchain infrastructure designed for real-world applications, while Circle’s USDC has become one of the most widely used and regulated stablecoins globally.

By leveraging these platforms, Bermuda aims to avoid the risks associated with experimental or untested systems. Instead, the country is adopting infrastructure that already supports billions of dollars in transactions and is integrated into global financial markets.

This approach allows Bermuda to experiment with innovation while maintaining credibility with regulators, financial institutions, and international partners.

A Growing Role at the World Economic Forum

The timing of the announcement at the World Economic Forum highlights the increasing role of crypto and blockchain in global economic discussions. Industry leaders, policymakers, and financial executives are using the forum as a venue to debate how digital assets can reshape financial systems.

Coinbase CEO Brian Armstrong has stated that one of his goals at the event is to engage directly with world leaders on how blockchain technology can modernize financial infrastructure and expand access to capital markets. He has also been vocal about the need for fair and balanced regulation, particularly around stablecoins.

Armstrong noted that stablecoins should be viewed as an opportunity for both traditional banks and crypto-native companies, provided regulatory frameworks create a level playing field. These discussions are especially relevant as lawmakers in the United States and elsewhere continue to debate market structure bills and stablecoin oversight.

Bermuda’s Experiment Could Set a Global Example

If successful, Bermuda’s onchain economy pilot could serve as a model for other small nations and financial hubs looking to modernize their systems without destabilizing existing structures. By starting with limited pilots, focusing on regulated stablecoins, and emphasizing education, Bermuda is taking a cautious yet forward-looking approach.

The country’s experience suggests that blockchain adoption at the national level is no longer just a theoretical concept. Instead, it is becoming a practical policy option for governments willing to invest in regulation, infrastructure, and public engagement.

As global interest in tokenization, stablecoins, and decentralized finance continues to grow, Bermuda’s partnership with Coinbase and Circle may prove to be an early blueprint for how countries can transition toward a more onchain future without sacrificing stability or trust.

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