The Government of Bermuda says it plans to transform the island into what it calls the world’s first fully on-chain national economy, in partnership with stablecoin issuer Circle and US-based crypto exchange Coinbase.

The announcement was made at the World Economic Forum Annual Meeting in Davos, where Bermuda officials said the initiative will see digital assets used as everyday financial infrastructure across the country.

Circle and Coinbase say they will provide digital asset infrastructure and enterprise tools to the Bermudian government, local banks, insurers, small and medium-sized businesses, and consumers, while also supporting nationwide digital finance education and technical onboarding.

Says Coinbase CEO Brian Armstrong,

“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.”

According to Circle, the move aims to address the high costs and restrictions associated with traditional payment rails in island economies, where merchant fees and access to onshore banking services can be limited. The firm says USDC will allow Bermudian merchants to accept fast, low-cost, dollar-denominated payments while meeting compliance requirements.

According to Circle co-founder and CEO Jeremy Allaire,

“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.”