Bermuda, a British Overseas Territory, is moving key payment and financial services onto the Stellar blockchain. Local authorities aim to create the world’s first economy fully operating on on-chain infrastructure.
The Government of Bermuda and the Stellar Development Foundation announced the practical launch of a project to transition the jurisdiction’s financial system to blockchain infrastructure. The initiative includes the integration of digital wallets, stablecoins, and tokenized financial instruments into the island’s everyday economy.
Under the plan, Bermuda residents will be able to use digital assets to:
- receive salaries;
- purchase goods and services from local merchants;
- pay government fees.
Users will be able to store and transfer funds through Stellar-based wallets. The press release emphasized that the network was originally designed for regulated financial services. Transaction fees on Stellar amount to fractions of a cent, while settlements are completed in around three seconds. In 2025, approximately $55 billion in payments were processed through Stellar, while stablecoin transaction volume rose by 72% in Q1 2026.
Authorities believe the transition to the new infrastructure will significantly reduce payment acquiring costs for businesses. Currently, local companies pay between 3% and 5% in card transaction fees, with some categories facing costs of up to 10% per transaction.
Speaking at the Bermuda Digital Finance Forum, Bermuda Premier David Burt stated that the island’s economy had long relied on outdated payment infrastructure, slowing the development of digital services and increasing financial costs for both businesses and residents. According to him, dollar-pegged stablecoins and the Stellar blockchain could fundamentally change the situation.
As part of the initiative, the government also plans to introduce a system for receiving and holding digital assets at the state level. The Cabinet approved the creation of the first government digital account based on Circle Mint, which authorities will use to accept and manage digital assets. Bermuda’s transport department will participate in the pilot launch.
Moreover, Bermuda plans to amend legislation governing the state FinTech development fund established in 2018. Following the reform, the fund will be allowed to accept digital assets and allocate them toward financing local startups and companies operating within the on-chain economy sector. The government intends to introduce the corresponding bill before the end of summer 2026.
Particular attention is also being given to the issuance of stablecoins backed by the Bermudian dollar (BMD). However, the government emphasized that it doesn’t intend to issue digital currency directly. Instead, stablecoins are expected to be issued by private-sector companies under the supervision of the Bermuda Monetary Authority (BMA). Officials believe locally denominated stablecoins could expand public access to financial services and investment opportunities.
During his speech, David Burt also noted that Bermuda began exploring digital assets in 2017, initially out of concern that blockchain solutions could eventually replace the traditional financial services sector that underpins the island’s economy. In 2018, Bermuda adopted the Digital Asset Business Act, becoming one of the first jurisdictions in the world to implement comprehensive digital asset regulation.
The Stellar Development Foundation CEO Denelle Dixon stated that Bermuda is among the few jurisdictions where clear regulation, political support, and government readiness to implement digital financial tools in the real economy have aligned simultaneously.
The project will also include digital literacy programs and pilot initiatives testing programmable digital money for social benefit payments. Authorities expect digital assets to eventually become the foundation of the country’s government payments, financial services, and investment infrastructure.
