Coinbase and Circle Power Bermuda’s Onchain Economy Shift

• Bermuda aims to shift its economy on-chain with USDC payments and blockchain tools.
• Government pilots, banks, and merchants test digital payments under regulated frameworks.
• Education programs teach wallets, compliance, and digital finance across all sectors.

Bermuda announced plans at the World Economic Forum in Davos on Monday to move its national economy on-chain. The government confirmed support from Coinbase and Circle to deploy blockchain payments, education, and enterprise tools nationwide. According to the announcement, the initiative targets high fees, limited banking access, and compliance needs through USDC-based infrastructure.

Regulatory Groundwork and Partners 

Bermuda’s plan expands on its 2018 Digital Asset Business Act, which set up a licensing system for crypto companies. Circle and Coinbase were among the first to get licenses and grew their operations as the local market developed. This framework set conditions for government cooperation, bank participation, and insurer involvement.

Following that base, discussions advanced during the Bermuda Digital Finance Forum in 2025, according to officials. There, the partners executed a USDC airdrop, distributing 100 USDC to each attendee for local spending. Subsequently, more Bermudian merchants accepted digital payments and tested compliance workflows.

Today, more than 40 virtual asset service providers have registered with the Bermuda Monetary Authority. Circle received a Class F license in July 2019, while Coinbase obtained the same license in 2023. Separately, Realm Insurance introduced products addressing crypto sector risks, according to the regulator.

Coinbase operates an international hub in Bermuda, offering derivatives for non-U.S. clients. Meanwhile, Circle expanded its footprint as stablecoin usage increased among local institutions. These activities complemented the government pilots announced in Davos.

Payments Costs Push Bermuda Toward Onchain Rails

For local businesses, regular payment processors often charge higher fees because the island is classified differently by financial networks. However, these costs narrow margins for small and medium-sized firms across tourism, retail, and services. In response, the government prioritized digital assets as everyday infrastructure, not speculative instruments.

USDC is the main, enabling fast, dollar-denominated payments with lower settlement costs. Several local projects show that stablecoins and tokenized finance can work while staying compliant and user-friendly.

The partnership isn’t exclusive, so Bermuda can still work with other companies and technologies. Officials emphasized that residents and businesses don’t have to use on-chain tools if they don’t want to. This outlook lets pilots test faster, cheaper, and more transparent payments without forcing anyone.

Merchants say transactions settle quicker than with card networks, and prices stay in dollars. Compliance checks are built into wallets and providers under existing rules. This experience informed the broader national design.

Related: Coinbase Warns It May Drop Support For CLARITY Act

Government Pilots, Education, and Sector Participation

The plan sets up pilot programs for using stablecoins in certain government services. At the same time, banks and insurance companies will add tokenization tools while following current regulations. These moves aim to get public and private systems working together under the same rules.

On top of that, partners promised nationwide education and training to help people and businesses adopt digital finance. According to the government, literacy programs target consumers, merchants, and public sector workers. This approach supports participation without mandating adoption, officials said.

Momentum is building for the Bermuda Digital Finance Forum 2026, set for May 11–14. Organizers want to involve more businesses, offer stronger consumer incentives, and bring in more participation from the financial sector. 

The event follows announcements made at Davos, showing different institutions are coordinating. Bermuda has also started accepting USDC for some taxes, fees, and government services. Coinbase announced tailored stablecoin services, pointing to enterprise tools supporting the effort. 

These steps help connect pilots, payments, and education. Education focuses on wallets, compliance, and consumer safety for everyday use. It also trains merchants on point-of-sale setups and accounting. This approach links teaching directly to the pilots already in progress.

Bermuda’s initiative combines regulation, infrastructure, and education into a single national program. Coinbase and Circle supply tools and support, while government agencies, banks, and merchants test real usage. According to official statements, pilots, payments, and training now move forward on an on-chain foundation.