Bermuda Partners with Coinbase, Circle for Onchain Economy

Bermuda has announced plans to become the world’s first fully onchain national economy. The government unveiled a partnership with Coinbase and Circle at the World Economic Forum in Davos, Switzerland on Monday.

We’re bringing an entire country onchain.

Bermuda is building the world’s first fully onchain national economy, with support from Coinbase and @Circle. pic.twitter.com/fFL1foSFHu

— Coinbase 🛡️ (@coinbase) January 19, 2026

The initiative aims to deploy digital asset infrastructure across government agencies, businesses, and consumers throughout the island nation. Both companies will provide enterprise tools to local banks, insurers, and small businesses.

Premier E. David Burt emphasized the economic rationale behind the move. Traditional payment rails impose high costs on Bermuda’s entrepreneurial economy due to its classification alongside Caribbean jurisdictions.

This initiative is about creating opportunity, lowering costs, and ensuring Bermudians benefit from the future of finance

Burt said in a statement.

Coinbase’s Role in Regulatory Foundation

Bermuda has positioned itself as an early mover in digital asset regulation. The country introduced the Digital Asset Business Act in 2018, creating one of the first comprehensive regulatory frameworks globally.

Circle and Coinbase were among the first international firms licensed under that regime. Coinbase currently operates a derivatives platform outside the United States through its Bermuda-based entity.

Partnership discussions began at the Bermuda Digital Finance Forum in May 2024, according to a Coinbase spokesperson. At that event, the government executed an onchain USDC airdrop, distributing 100 USDC to each attendee.

Those tokens were used with newly onboarded local merchants. Since then, additional Bermudian businesses have begun accepting digital payments.

Local financial institutions have also expanded their use of stablecoins and tokenized finance tools. Circle’s USDC stablecoin sits at the center of the effort, enabling fast, low-cost, dollar-denominated payments.

The partnership outlines several concrete next steps for Bermuda’s digital transformation. Government agencies are expected to begin piloting stablecoin-based payments in the near term.

Financial institutions will integrate tokenization tools into their operations. Residents will participate in nationwide digital literacy programs designed to increase adoption.

The Bermuda Digital Finance Forum 2026 is scheduled for May 11-14. Officials said the event will feature broader business participation and a larger consumer stimulus program.

Meanwhile, the partnership with Coinbase and Circle remains non-exclusive. Bermuda can work with other firms and technologies as the initiative progresses.

The announcement noted potential long-term benefits for participants. Lower transaction costs and greater access to global finance through modern digital wallets were highlighted.

Coinbase Launches Stablecoin-as-a-Service

Separately, Coinbase announced the launch of its Custom Stablecoins product. The service allows businesses to create custom-branded stablecoins backed by USDC and other dollar stablecoins.

COINBASE ROLLS OUT CUSTOM STABLECOINS THAT ALLOW BUSINESSES TO ISSUE 1:1 USD-BACKED COINS

THIS IS HUGE 🚀 pic.twitter.com/vhsY9q7nRX

— That Martini Guy ₿ (@MartiniGuyYT) January 19, 2026

Companies can launch without building their own infrastructure. Coinbase handles smart contract deployment, security, and chain management on their behalf.

The platform offers customizable brand identity options including asset names and visual elements. Businesses gain access to Coinbase’s global consumer, business, and institutional user base.

Reserves are backed by flexible USD-stablecoin collateral and held in segregated wallets. Coinbase provides custody services for these reserves.

Participants earn rewards based on total circulating supply of their custom stablecoin. Rewards accrue daily and are paid out monthly to Prime accounts.

Zero-fee swaps between USDC and any Custom Stablecoin ensure instant liquidity. Coinbase noted that stablecoins enabled $9 trillion in adjusted annual transaction volume during 2025.