On a small island where most goods are imported, and nearly every payment must pass through foreign banks, money doesn’t always move easily. For many businesses in Bermuda, slow settlements, high fees, and limited access to global banking have long been part of daily life.
That friction is now shaping a bold national experiment. Bermuda wants to move money in a way that feels instant, predictable, and less dependent on traditional financial rails, and it believes blockchain and stablecoins may be the answer.
This week, that vision took center stage as Bermuda unveiled plans to build what officials describe as a “fully on-chain” economy, anchored by partnerships with Coinbase and Circle. The announcement was made at the World Economic Forum in Davos, where executives from both companies appeared alongside Bermuda Premier David Burt.
Oluwajeminipe Fasheun-Motesho
Why Bermuda Is Rethinking How Money Moves
For years, Bermuda has faced the same structural problems as many small island economies. Global banks have reduced exposure to the Caribbean through de-risking, making correspondent banking relationships harder to maintain.
That reality has translated into higher costs, slower cross-border payments, and fewer options for small and medium-sized businesses trying to operate internationally. According to the government, these frictions have weighed on competitiveness and squeezed margins across the local economy.
Premier David Burt framed the shift as a practical response to those challenges rather than a speculative bet. “This is about opportunity,” Burt said in Davos. “It is about making sure Bermudians can participate directly in the future of the global financial system, not be locked out by outdated infrastructure.”
USDC and Base at the Center of Daily Payments
At the heart of Bermuda’s plan is Circle’s USDC stablecoin, combined with Coinbase’s Base blockchain infrastructure. Under the partnership, the government will pilot stablecoin-based payments across government agencies, financial institutions, and local businesses. The first phase focuses on everyday use cases like payments and settlement, alongside tokenization tools for financial institutions and nationwide digital finance education aimed at residents.
Circle CEO Jeremy Allaire described the effort as a real-world test of how stablecoins can function beyond trading. “USDC was designed to work like digital cash for the internet economy,” he said. “Bermuda is showing what happens when a jurisdiction aligns regulation, infrastructure, and education to make that possible at a national level.” For merchants, the appeal lies in fast settlement and lower transaction costs without exposure to crypto price swings.
David Adubiina
While the announcement may feel sudden, Bermuda’s move is the result of years of regulatory preparation. The country introduced its Digital Asset Business Act in 2018, placing digital asset oversight under the Bermuda Monetary Authority. Since then, more than 40 digital asset firms have been licensed or admitted into regulatory sandboxes, including Coinbase and Circle, which were among the earliest global players approved.
Coinbase already operates a derivatives platform from Bermuda for non-U.S. users, making the island a strategic base for its international operations. That existing relationship helped lay the foundation for deeper collaboration. According to Coinbase executives, Bermuda’s clear rules and compliance-first approach made it one of the few jurisdictions where a nationwide on-chain pilot could realistically work.
If successful, Bermuda’s experiment could serve as a blueprint for other small economies grappling with the limits of global banking infrastructure. By combining regulation, education, and real-world pilots, the island is testing whether stablecoins can move from the margins of finance into daily life without undermining trust or stability.
