Bermuda Plans a Fully On Chain Economy Using USDC

A small island nation just outlined a very large ambition. Bermuda plans to place digital assets at the center of daily economic life, with government leaders framing the effort as a national shift rather than a pilot project.

Good to Know

• Bermuda plans to operate core financial activity on blockchain rails
• Circle and Coinbase will provide infrastructure and onboarding support
• USDC will act as a primary payment and settlement tool

Bermuda Lays Out Plan for Fully On Chain National Economy

The Government of Bermuda says it intends to build what it describes as the world first fully on chain national economy, working alongside stablecoin issuer Circle and US based crypto exchange Coinbase.

Officials announced the initiative during the World Economic Forum Annual Meeting in Davos, positioning digital assets as everyday financial infrastructure across the island. The plan extends beyond payments and targets banking, insurance, commerce, and consumer finance.

Circle and Coinbase will supply digital asset infrastructure and enterprise tools to government agencies, local banks, insurers, small and medium sized businesses, and residents. Both companies also committed to supporting digital finance education and technical onboarding nationwide.

Stablecoins Move Into Daily Commerce

According to Circle, the initiative focuses on long standing challenges faced by island economies. Traditional payment rails often carry high merchant fees and limited access to onshore banking services, creating friction for both businesses and consumers.

USDC will serve as a dollar denominated settlement layer designed to support fast, low cost payments while meeting compliance standards. Circle says Bermudian merchants will gain the ability to accept digital payments without relying on expensive intermediaries.

The government sees the model as a way to modernize financial access while maintaining regulatory clarity.

Coinbase and Circle Expand Government Partnerships

Coinbase confirmed its role in supporting the transition, highlighting the scope of the effort and the use of Base as part of the on chain stack.

Coinbase CEO Brian Armstrong said:

“Huge. An entire country is coming onchain, using USDC and Base.

We are excited to support Bermuda’s transition toward an onchain economy that empowers local businesses, consumers, and institutions.”

Circle leadership echoed that view, pointing to Bermuda regulatory history as a foundation for broader adoption. Circle co founder and CEO Jeremy Allaire said:

“Bermuda has been a global pioneer in digital asset regulation and continues to demonstrate what responsible blockchain innovation looks like at a national scale.

We are proud to deepen our engagement as Bermuda empowers people and businesses with USDC and on-chain infrastructure.”

Bermuda already holds a reputation as an early mover in digital asset regulation. The government licensed crypto firms and established compliance frameworks years ahead of many jurisdictions.