Bermuda has decided to move its key financial services on-chain. The government of Bermuda has announced a partnership with Stellar, a decentralized and open-source Layer-1 blockchain that offers a fast, low-cost movement of money and assets. The development is aimed at creating faster and cheaper bank and credit services to retain the wealth within the island.
The economy of Bermuda is heavily reliant on remittances. Up until now, the residents of Bermuda had been paying high payment processing fees. This, the authorities of Bermuda said, was leaving a dent in the national economic opportunities.
“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,” David Burt is the Premier of Bermuda and the leader of the Progressive Labour Party (PLP) said in a statement.
In 2024, the GDP of Bermuda had hit around $9.19 billion. As per government figures, the GDP of Bermuda estimatedly rose by 2.5 percent to three percent in 2025. The misitry of finance there credited the expansion in its international business sector as well as tourism.
The region has remained progressive in-terms of its approach around crypto. In 2018, it had introduced the Digital Asset Business Act (DABA) that laid out clear guidelines for digital asset companies looking to enter its ecosystem. Coinbase and Circle are among crypto players that have carved inroads into Bermuda in the last few years.
This year, the Cabinet there green-signalled a new regulatory framework allowing the government to invest in digital assets. The Bermuda Monetary Authority (BMA) is presently finalizing the categories of licences under the Payment Services Act (PSA) to tighten regulatory oversight over crypto players.
Bermuda now envisions a “fully onchain economy” where digital assets would become an integrated part of the island’s economy.
At present, local merchants currently pay three to five percent per transaction in card fees, along with a spike of around 10 percent in effective payment processing costs.
“The use of digital assets and infrastructure is designed to keep more of that value on-island,” the announcement statement noted.
Stellar, commenting on the development, has reiterated that under its partnership with Bermuda it would deliver a sustained transaction volume and enterprise-grade reliability across financial applications.
“Bermuda has assembled what most jurisdictions cannot: regulatory clarity, an aligned ecosystem, and a government willing to lead. The Stellar Development Foundation is proud to work with Bermuda to help realize the vision of a fully onchain economy,” said Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation.
Last year, Stellar had worked with the Republic of the Marshall Islands to facilitate a nationwide on-chain distribution of the universal basic income via USDM1 stablecoin.
For this blockchain network, this partnership marks another milestone in its international expansion. Earlier in April, it renewed its partnership with MoneyGram to grow its stablecoin services across Latin America.
