Bermuda Partners with Circle and Coinbase for World’s First On-Chain National Economy

• The government of Bermuda has announced plans to integrate an on-chain national economy with Circle and Coinbase support.
• Stablecoin-based payments will soon be piloted by government agencies, banks, and businesses.

In a move that could redefine national finance, Circle and Coinbase are collaborating with the Bermuda government to create the world’s first entirely on-chain national economy. Both companies operate as a support to integrate blockchain technology and give Bermuda the tools to process digital payments, like issuing stablecoins, and help every type of business get on-chain.

As per the press release from Circle, this collaboration was announced at the World Economic Forum annual meeting in Davos, Switzerland. Which aims not only to modernize financial systems but also to attract global digital assets investment, to support digital finance education, and establish Bermuda as a hub for digital finance innovation.

Bermuda Sees Digital Finance as a Solution 

Bermuda’s idea of transition to digital financial infrastructure coincides with ongoing problems from traditional payment systems in its highly entrepreneurial economy. Mainly, the island’s jurisdictions, alongside other small and island countries, local firms frequently face high costs and restricted access to effective offshore financial services, which can put pressure on merchants.

An alternative is provided by the implementation of on-chain payment infrastructure. With that, merchants can accept dollar-denominated payments, which would allow faster settlement times and lower transaction fees by utilizing stablecoins like USDC, noted in the announcement. 

Also, it states the plan for pilot programs incorporating stablecoin-based payments, as well as financial institutions’ efforts to incorporate tokenization technologies into their services. Residents will be encouraged to take part in nationwide digital financial and literacy programs. So far, no particular financial information or timetables have been released.

Bermuda’s early approach to crypto regulation

The latest initiative builds on Bermuda’s early role in digital asset regulation. In 2018, the island passed the Digital Asset Business Act, making it one of the first governments to implement a comprehensive framework, with Circle and Coinbase among the first global licensed firms.
 With that, it continued at the Bermuda Digital Finance meeting 2025, with participants receiving a 100 USDC airdrop. Since then, local financial institutions started to use stablecoins. The 2026 meeting in May is expected to lead to deeper engagement across the financial services sector.

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