Coinbase & Circle Forge Historic Alliance: Building the World’s First On-Chain National Economy in Bermuda

Two crypto titans just teamed up to rewrite the rulebook for national finance. Coinbase and Circle are launching a joint venture that aims to transform Bermuda into a fully on-chain economy—a global first that could make traditional banking infrastructure look like a relic.

The Digital Sand Dollar Gets Real Muscle

Forget pilot programs. This partnership supercharges Bermuda's existing digital currency, the Sand Dollar, by integrating it directly with the global liquidity of USDC and Coinbase's massive retail and institutional rails. It's a move that effectively cuts out correspondent banking delays for cross-border transactions.

Regulation as a Feature, Not a Bug

The venture operates under a full Digital Asset Business Act license from the Bermuda Monetary Authority. That's the key—it's not a tech experiment operating in a gray zone, but a regulated financial entity. It bypasses years of regulatory uncertainty by building inside a clear framework.

What an On-Chain Economy Actually Means

Think salaries, taxes, and local commerce settled in seconds on a public ledger. The initiative plans to onboard local businesses and government services, creating a closed-loop system where digital assets are the primary medium of exchange—not just a speculative toy for crypto degens.

It's a bold vision that finally delivers on the 'bank the unbanked' promise, albeit starting with a sophisticated offshore financial center first. Because of course, the revolution in accessible finance begins where the billionaires vacation—a cynical nod to finance's predictable priorities.

If this model works, it won't stay in Bermuda. It becomes a blueprint, a turnkey package for any nation-state tired of waiting for its legacy financial system to catch up. The message to the world's central banks? The future of money is being built—and it's not waiting for permission.

Coinbase, Circle To Build New Digital Asset Infrastructure 

Under this initiative, Coinbase and Circle are set to provide digital asset infrastructure and enterprise tools to various stakeholders, including the Bermuda government, local banks, insurers, and small and medium-sized enterprises.

Bermuda’s Premier, E. David Burt, commented on the initiative, stating, “This initiative is about creating opportunity, lowering costs, and ensuring Bermudians benefit from the future of finance.”

Government agencies are expected to begin piloting payments using stablecoins such as Circle’s USDC, while financial institutions are set to adopt tokenization tools. Residents will also have the opportunity to engage in nationwide digital literacy programs that foster understanding of the emerging financial landscape.

The announcement highlighted that transitioning to an on-chain economy is anticipated to include reduced transaction costs and improved access to global finance, facilitated by modern digital wallets and infrastructure with Coinbase and Circle’s support.

Bermuda’s Crypto Landscape

Bermuda has positioned itself as a leader in the digital asset space, having established its own regulatory framework for digital assets as early as 2018. This approach has attracted numerous companies looking for regulatory clarity amid tightening regulations in other regions. 

The country’s regulatory framework currently supports a diverse range of regulated digital asset activities. The Bermuda Monetary Authority (BMA) is responsible for licensing crypto exchanges, yield-bearing stablecoin structures, and decentralized finance protocols under a cohesive supervisory regime. 

This structure enables tokenized money market funds to operate within the jurisdiction, and even allows digital-native insurers to manage reserves, collect premiums, and process claims using cryptocurrency, all while adhering to traditional financial oversight.

Bermuda’s focus on digital finance has generated significant business interest. Notably, in late 2024, the BMA issued the world’s first license to a decentralized derivatives exchange governed by a Decentralized Autonomous Organization (DAO). 

The jurisdiction also accommodates regulated derivatives operations linked to major exchanges, including Coinbase and Kraken, showcasing ongoing institutional confidence in its clear regulatory framework. 

Furthermore, Bermuda has attracted utility-driven firms like Haycen, which utilizes specialized stablecoins to offer faster trade financing, effectively bridging gaps often encountered by conventional banks.

In addressing the risks associated with digital finance, Premier Burt acknowledged that no financial system can be fully insulated from risk. “In life, you can’t insure anything,” he stated in an interview. 

He emphasized the importance of policymakers balancing caution with humility, allowing room for innovation while maintaining a robust regulatory environment in this still-evolving sector.

Featured image from DALL-E, chart from TradingView.com