Key Highlights
- Bermuda plans to migrate key payment and financial services onto the Stellar blockchain.
- The initiative aims to make Bermuda the world’s first fully on-chain national economy.
- Residents will be able to receive wages, make payments, and use digital assets through Stellar-based wallets.
The Stellar Development Foundation, a nonprofit organization, along with the Government of Bermuda, today announced that the country is planning to migrate key payment and financial services to the Stellar blockchain.
According to the official announcement, this is the first major step toward Bermuda’s goal of becoming the world’s first fully on-chain national economy. The effort builds on the regulatory framework set up by the Digital Asset Business Act of 2018.
The move follows the government’s announcement at the World Economic Forum in Davos in January 2026, where Bermuda revealed its intention to become the world’s first fully on-chain national economy.
Lower payment costs and stablecoin pilots
The integration helps Bermudian residents to receive wages, pay local merchants, settle government fees, and hold, send, and receive digital assets through user-friendly Stellar wallets. Stellar’s global cash on-and-off-ramp infrastructure provides seamless conversion between digital assets and traditional currency.
In the current scenario, local merchants face high payment processing costs, normally 3-5% per card transaction and up to 10% in some categories. By integrating on-chain payments, Bermuda targets retaining more economic value domestically, reducing friction, and fostering more financial inclusion.
Government agencies are planning a pilot stablecoin-based payment, while financial institutions will amalgamate tokenization tools. Digital literacy programs across the nation will help residents adopt the new infrastructure.
Previous update regarding Bermuda’s announcement
Earlier this year, Bermuda partnered with Coinbase and Circle to develop an on-chain national economy. In the announcement on the World Economic Forum, the country revealed that it plans to collaborate with Coinbase and Circle to transition a major portion of its national economy to blockchain technology.
As part of the bold initiative, the authorities plan to use blockchain-based payments and cryptocurrencies as common financial instruments by the government, banks, insurance companies, firms, and individuals. USDC will become the main settlement currency with the help of Coinbase as the backbone provider.
Officials highlight infrastructure limitations
Hon. E. David Burt, JP, MP, Premier of Bermuda, noted that “The lack of mobile money applications and reliance on legacy payment infrastructure has left Bermudians paying high payment processing fees and hindered additional economic growth opportunities.”
He further highlighted that “the use of digital dollars can change that, and the Stellar network’s capacity to support public sector initiatives are what make it possible to deliver this responsibly and at the scale Bermuda requires.”
Denelle Dixon, CEO and executive director of the Stellar Development Foundation, stated, “Stellar was purpose-built to streamline and seamlessly integrate the global financial system. Bermuda has assembled what most jurisdictions cannot: regulatory clarity, an aligned ecosystem, and a government willing to lead.”
A test case for smaller economies
The initiative places Bermuda among the most ambitious jurisdictions pursuing blockchain-based public infrastructure.
If implemented as planned, it could serve as a model for smaller economies seeking to modernize payment systems and reduce dependence on traditional financial infrastructure.
