TLDR:
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- Bermuda will become the world’s first fully onchain national economy using the Stellar blockchain network.
- Local merchants pay up to 10% in card fees; onchain payments aim to cut those costs significantly.
- Residents will receive wages, pay merchants, and settle government fees through Stellar digital wallets.
- Stellar previously powered the Marshall Islands’ first nationwide onchain universal basic income program.
Bermuda is set to become the world’s first fully onchain national economy after the Stellar Development Foundation and the Government of Bermuda announced a landmark partnership.
The initiative will move key payment and financial-services activity onto the Stellar blockchain network. Local merchants, residents, and government agencies will all take part in the rollout. This follows Bermuda’s announcement at the World Economic Forum in January 2026.
Stellar Network to Power Bermuda’s Everyday Transactions
Bermudian residents will receive wages and pay merchants through digital wallets on the Stellar network. They will also settle government fees and hold, send, or receive digital assets where available.
The move targets a long-standing cost burden on local commerce. Merchants currently pay between 3% and 5% per transaction in card fees, with costs reaching up to 10% in some sectors.
Stellar’s cash on and off-ramp network is among the largest for digital assets globally. This gives Bermudians accessible entry and exit points within the digital economy.
Government agencies will pilot stablecoin-based payments as part of the rollout. Social service disbursements are also among the planned government payment applications.
Premier E. David Burt pointed to years of structural gaps in the island’s payments system. “The lack of mobile money applications and reliance on legacy payments infrastructure has left Bermudians paying high payment processing fees and hindered additional economic growth opportunities,” Premier Burt said.
He continued that the use of digital dollars can change that outcome. He also noted that the Stellar network’s capacity to support public sector initiatives makes responsible delivery possible at the scale Bermuda requires.
Stellar’s architecture is purpose-built for regulated financial services. It settles payments in seconds at a fraction of a U.S. cent.
The network pairs a permissionless structure with the asset controls that institutions require. It operates on a public, configurable, and global design framework.
Regulatory Foundation and Broader On-Chain Vision
Bermuda’s push did not begin with this announcement. The island built its regulatory groundwork with the Digital Asset Business Act of 2018.
That legislation was among the earliest comprehensive digital asset regimes anywhere in the world. It gave Bermuda a head start in creating the conditions for this kind of initiative.
Stellar has a track record in sovereign deployments. In December 2025, the Republic of the Marshall Islands used the network to deliver the world’s first nationwide onchain universal basic income disbursement via USDM.
That program, known as ENRA, set a global precedent for public sector blockchain use. Bermuda’s partnership builds on that established foundation.
Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, explained what distinguishes Bermuda from other nations pursuing similar goals. “Stellar was purpose-built to streamline and seamlessly connect the global financial system,” Dixon said.
She added that Bermuda has assembled what most jurisdictions cannot, including regulatory clarity, an aligned ecosystem, and a government willing to lead.
Dixon confirmed that the Stellar Development Foundation is proud to work with Bermuda to help realize the vision of a fully onchain economy.
Financial institutions in Bermuda will also gain access to tokenization tools through the network. Nationwide digital literacy programs will run alongside the technical rollout.
The goal is a more inclusive and competitive national economy. On Stellar, digital assets are meant to be everyday infrastructure, not a parallel system for enthusiasts.
