Bermuda Partners with Circle and Coinbase to Build World’s First Fully Onchain National Economy

TLDR:

• Bermuda announces partnership with Circle and Coinbase at World Economic Forum in Davos, Switzerland.
• USDC stablecoins will replace expensive traditional payment rails for local merchants and businesses.
• Bermuda Digital Finance Forum 2025 distributed 100 USDC to attendees at participating local merchants.
• Government agencies will pilot stablecoin payments while institutions integrate tokenization tools.

The Government of Bermuda announced plans to become the world’s first fully onchain national economy at the World Economic Forum Annual Meeting in Davos, Switzerland.

Circle and Coinbase will support this transformation by providing digital asset infrastructure and enterprise tools to government agencies, financial institutions, businesses, and consumers.

The initiative builds on Bermuda’s 2018 Digital Asset Business Act, which established comprehensive regulatory frameworks for digital finance.

Digital Infrastructure to Transform Payment Systems

Circle and Coinbase plan to deploy their digital asset platforms across Bermuda’s financial ecosystem. 

The companies will provide technical support to local banks, insurance companies, and small to medium-sized businesses. 

Both firms received licenses under Bermuda’s digital asset regime and have operated within the jurisdiction’s regulatory framework since its inception.

The partnership addresses cost challenges facing Bermudian merchants. Traditional payment processors classify Bermuda alongside Caribbean and island jurisdictions, resulting in higher transaction fees.

These elevated costs reduce profit margins for local businesses operating in a competitive market environment.

USDC stablecoins offer merchants an alternative payment method with lower processing costs. Several Bermudian businesses currently accept USDC payments, demonstrating practical applications of digital currency infrastructure. 

These early adopters show how blockchain-based payments can facilitate local transactions while meeting regulatory compliance requirements.

Circle co-founder and CEO Jeremy Allaire praised Bermuda’s regulatory approach. “Bermuda has been a global pioneer in digital asset regulation and continues to demonstrate what responsible blockchain innovation looks like at a national scale,” Allaire said. 

He added that Circle is proud to deepen its engagement as Bermuda empowers people and businesses with USDC and on chain infrastructure.

Nationwide Education and Implementation Programs

The Government of Bermuda will implement digital finance education programs at the national level. These initiatives aim to prepare residents and business owners for participation in an onchain economy. 

Technical onboarding support will accompany educational efforts to ensure widespread adoption across different sectors.

Premier E. David Burt emphasized the collaborative nature of the initiative. “Bermuda has always believed that responsible innovation is best achieved through partnership between government, regulators, and industry,” the Premier stated. 

He noted that with support from Circle and Coinbase, Bermuda is accelerating its vision to enable digital finance at the national level.

The Bermuda Digital Finance Forum 2025 marked a notable development in the partnership. Circle, Coinbase, and the 

Government of Bermuda executed a USDC airdrop, distributing 100 USDC to each attendee. Recipients could spend the digital currency at participating local merchants who had recently integrated digital payment systems.

Coinbase CEO Brian Armstrong connected the initiative to broader economic principles. “Coinbase has long believed that open financial systems can drive economic freedom,” Armstrong said. 

He stated that Bermuda’s leadership demonstrates what becomes possible when clear rules are paired with strong public-private collaboration.

Additional businesses have adopted digital payment acceptance following the forum. Local financial institutions have expanded their use of stablecoins and explored tokenized finance applications. 

The Bermuda Digital Finance Forum 2026 will take place from May 11 to 14, with expanded business participation and a larger consumer stimulus program planned.

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