Coinbase and Circle Partner to Pioneer On-Chain National Economy in Bermuda

In a landmark collaboration announced on January 22, 2026, cryptocurrency exchange giant Coinbase and stablecoin issuer Circle have unveiled a strategic partnership with the government of Bermuda. This initiative aims to transform the island nation into the world's first fully on-chain national economy. The project represents a significant leap in the institutional adoption of digital assets, positioning Bermuda as a pioneering testbed for integrating blockchain technology at a sovereign level. The core of this transformation will be the widespread deployment of digital asset infrastructure across Bermuda's government agencies, financial institutions, and local businesses. The USDC stablecoin, co-founded by Circle, is set to become a central pillar for payments and settlements within this new economic framework. Furthermore, the partnership will introduce advanced tokenization tools, enabling the representation of real-world assets and government services on the blockchain. Bermuda's Premier, E. David Burt, has championed the initiative, framing it as a crucial strategy for future economic resilience and innovation. By embracing an on-chain economy, Bermuda seeks to enhance financial efficiency, attract blockchain-based businesses, and create a more transparent and accessible financial ecosystem for its citizens and residents. This move is expected to streamline government operations, reduce transaction costs, and foster new digital-native industries. For Coinbase, this partnership expands its role beyond a trading platform into a core infrastructure provider for a national digital economy, aligning with its mission to build the cryptoeconomy. For Circle, it represents the largest-scale real-world implementation of USDC as public infrastructure. The success of this ambitious project in Bermuda could serve as a blueprint for other nations considering similar digital transformations, marking a pivotal moment where cryptocurrency principles move from the fringe of finance to the foundation of a national economic system.

Coinbase and Circle Partner to Pioneer On-Chain National Economy in Bermuda

Coinbase and Circle have unveiled a groundbreaking partnership aimed at establishing Bermuda as the world's first fully on-chain national economy. The collaboration will deploy digital asset infrastructure across government agencies, financial institutions, and local businesses, with USDC stablecoin payments and tokenization tools at its core.

Bermuda's Premier E. David Burt framed the initiative as an economic catalyst: "This is about creating opportunity, lowering costs, and ensuring Bermudians benefit from the future of finance." The project promises reduced transaction costs and enhanced global financial access through Coinbase's wallet infrastructure and Circle's stablecoin technology.

The island nation continues to solidify its crypto hub status, having previously implemented progressive digital asset regulations. This latest MOVE positions Bermuda as a living laboratory for blockchain-based economic systems.

Crypto Market Slides Amid Geopolitical Tensions and Thin Optimism

The cryptocurrency market capitalization fell 1.6% to $3.17 trillion, with 85 of the top 100 coins posting losses. Bitcoin dropped 1.6% to $91,020, while Ethereum declined 2.5% to $3,117. The downturn follows former U.S. President Donald Trump's threats of tariffs against EU nations over Greenland's control, sparking risk-off sentiment across digital assets.

Market structure appears fragile. 'The pullback suggests Optimism was on thin ice,' analysts note, as Bitcoin enters a dense long-term holder supply zone between $93,000 and $110,000—a range where previous recoveries stalled. Ethereum network activity spikes raise concerns, with some attributing the surge to address poisoning attacks rather than organic demand.

Infrastructure developments continue behind the price action. Coinbase CEO Brian Armstrong will discuss U.S. crypto market structure at Davos, while spot ETFs resume trading after Monday's closure. The weekend saw stagnant prices, with traders awaiting clearer signals.

Blockchain Adoption Advances Amid U.S. Regulatory Uncertainty

Institutional adoption of blockchain technology continues to accelerate despite unresolved regulatory questions in the United States. Clear Street's latest analysis highlights growing engagement with tokenization, stablecoins, and on-chain infrastructure even as the Clarity Act faces delays.

Coinbase's opposition has stalled Senate Banking Committee review of the proposed legislation, potentially pushing final consideration to March or later. The exchange's CEO Brian Armstrong warns the current draft could disadvantage crypto firms by restricting stablecoin rewards—a move that WOULD benefit traditional banks at the expense of consumer benefits.

Coinbase CEO Targets 4 Billion 'Unbrokered' Adults with Blockchain Vision

Coinbase CEO Brian Armstrong has outlined an ambitious plan to bridge global wealth disparities through blockchain tokenization. The initiative targets approximately 4 billion adults currently excluded from traditional equity and bond markets—a population Armstrong refers to as 'the unbrokered.'

Labor income growth has trailed capital income by nearly 80 percentage points since 1987, creating what Coinbase's policy paper describes as a structural barrier to prosperity. Market participation rates reveal stark geographic inequalities: while 55-60% of US adults access capital markets, China and India show engagement below 10%.

The proposal frames blockchain as a technological equalizer, capable of dismantling cost barriers that have historically prevented wealth creation. 'Imagine a skilled worker in Lagos or Jakarta,' Armstrong suggests, 'possessing the drive but lacking the tools available to privileged investors.'

Coinbase Advocates Tokenization as Path to Equitable Wealth Access

Coinbase CEO Brian Armstrong asserts that tokenization could democratize access to high-yield financial markets, addressing systemic disparities in wealth creation. Capital income growth has outpaced labor income by 79 percentage points since the 1990s, per Coinbase research.

The exchange's analysis reveals capital markets increasingly favor asset holders over wage earners. Tokenized assets could dismantle geographic and economic barriers to investment opportunities traditionally reserved for the wealthy.

CNBC Executive Details Sophisticated Attempt to Hijack Coinbase Account

A CNBC vice president narrowly avoided losing access to his cryptocurrency holdings after facing a multi-layered social engineering attack. The assailant, posing as a Coinbase security agent named 'Brian Miller,' deployed stolen personal data and fabricated transaction alerts to create urgency.

The scammer claimed fraudulent activity originating from Frankfurt, Germany—including attempted transfers from an unauthorized email address. When challenged, the impersonator doubled down by asserting the attacker possessed the victim's Social Security number, contact details, and even a facial recognition match from Coinbase's KYC system.

Notably absent were any direct mentions of specific cryptocurrencies or trading platforms beyond Coinbase itself. The incident highlights growing security concerns surrounding centralized exchanges as gatekeepers to digital asset ownership.