TL;DR
- Bermuda plans to create what it calls the world’s first “fully onchain” national economy
- The initiative is backed by partnerships with Coinbase and stablecoin issuer Circle
- The country will use USDC and Coinbase’s Base infrastructure for payments and tokenization
- A pilot program will start with stablecoin payments, tokenized finance tools, and digital literacy efforts
- The move builds on Bermuda’s early crypto-friendly regulations introduced in 2018
Bermuda is making one of the clearest national-level bets yet on blockchain-based infrastructure. The government of the Caribbean island nation announced plans to build a “fully onchain” economy, supported by partnerships with Coinbase and Circle, the issuer of the USDC stablecoin.
The announcement was made Monday during the World Economic Forum Annual Meeting in Davos, Switzerland. Bermuda Premier David Burt appeared alongside representatives from Coinbase and Circle to outline how digital assets will play a central role in the country’s economic model going forward.
At the core of the plan is the use of USDC for payments and Coinbase’s Base blockchain infrastructure to support transaction settlement and tokenization. Rather than treating crypto as a niche sector, Bermuda is positioning blockchain rails as a foundational layer for government services, financial institutions, and everyday commerce.
Coinbase framed the move as a milestone for public-sector adoption. In a post on X, the exchange said,
While the phrase “fully onchain” can sound abstract, Bermuda’s plan is notably practical. The government has made clear that this is not about speculative tokens or experimental governance models. Instead, it is about using stablecoins and blockchain infrastructure to modernize payments, improve efficiency, and lower friction across the economy.
What the Pilot Program Will Actually Do
The rollout will begin with a pilot program focused on three areas: stablecoin-based payments, tokenization tools for financial institutions, and nationwide digital literacy initiatives.
According to the announcement, Bermuda government agencies will test stablecoin payments using USDC, allowing transactions to settle quickly and transparently onchain. For residents and businesses, this could mean faster payments with fewer intermediaries, particularly for cross-border activity, which is critical for an island economy that relies heavily on tourism and international services. Financial institutions will also begin integrating tokenization tools. In simple terms, tokenization allows real-world assets or financial instruments to be represented digitally on a blockchain.
This can make issuance, settlement, and record-keeping more efficient, while still operating within a regulated framework. Just as important is the focus on digital literacy. The government plans to involve residents directly through education programs designed to explain how digital wallets, stablecoins, and onchain payments work. This emphasis reflects an understanding that infrastructure alone is not enough. Adoption depends on public trust and everyday usability.
Bermuda already has a head start here. According to the Monday notice, many local businesses accept digital payments following a USDC airdrop at the Bermuda Digital Finance Forum in May 2025. That earlier initiative introduced merchants and residents to stablecoin usage in a real-world setting, rather than through theory or marketing. By starting with a controlled pilot, the government can test systems, identify pain points, and adjust before expanding the model nationwide. It also allows regulators to observe how onchain payments interact with existing compliance, reporting, and consumer protection requirements.
This is Not an Overnight Pivot
While the announcement grabbed attention, Bermuda’s move into digital assets did not happen overnight. The country has spent years positioning itself as a jurisdiction open to blockchain innovation, while maintaining regulatory clarity. A key milestone came in 2018 with the passage of the Digital Asset Business Act. The framework established clear rules for crypto companies operating in Bermuda, covering licensing, custody, compliance, and consumer safeguards. That early clarity helped attract firms like Coinbase and Circle at a time when many jurisdictions were still undecided on how to regulate digital assets.
Since then, Bermuda has continued to court crypto businesses, balancing openness with oversight. That long-term approach is now paying off as the government looks beyond hosting companies and toward integrating blockchain directly into national infrastructure. The partnership with Coinbase and Circle reflects that evolution. Bermuda is leaning on established players with proven technology and experience operating at scale. USDC provides a stable unit of account, while Base offers a blockchain environment designed for lower-cost transactions and broader access.
What's Next
For Bermuda, the goal is not to replace its existing financial system overnight, but to augment it with onchain rails where they make sense. Payments, settlement, and asset issuance are natural starting points, especially in a global economy that increasingly demands speed and transparency. The broader significance lies in precedent. If Bermuda succeeds, it may offer a blueprint for how small nations can adopt blockchain infrastructure without sacrificing regulatory control. Instead of chasing hype, the country is focusing on concrete use cases tied to government operations and everyday economic activity.
Whether Bermuda truly becomes the world’s first fully onchain national economy will depend on execution, adoption, and regulatory follow-through. But with years of groundwork already laid and major industry partners involved, the experiment is no longer theoretical. It is moving from conference stages and press releases into real-world pilots, where the results will matter.
READ MORE: COTI Earn Season 3 Explained: Rewards, TPS, Missions, and How It Works