The Government of Bermuda, in partnership with the Stellar Development Foundation (SDF), has begun shifting key payment and financial services onto the Stellar network. The initiative, first revealed at the World Economic Forum earlier this year, aims to transform Bermuda into the world’s first fully onchain national economy.
Under the new system, Bermudians will use Stellar-based wallets to receive salaries, pay merchants, settle government fees, and transfer digital assets. The government expects this to significantly reduce payment processing costs that currently range between 3% and 10% for local businesses, keeping more value within the domestic economy.
Stablecoin-powered payment systems will be piloted by government agencies, while financial institutions gain access to tokenization tools built on Stellar’s regulated infrastructure. Bermuda’s existing Digital Asset Business Act (2018) provides a clear regulatory framework, giving the project a solid legal foundation.
Stellar’s low fees and fast settlement make it suitable for everyday national transactions. The network previously supported the Marshall Islands’ ENRA program, which delivered nationwide onchain universal basic income using USDM1 in late 2025. This Bermuda deployment marks a much broader integration, effectively placing an entire economy onchain.
The move positions Stellar as regulated financial infrastructure rather than a speculative blockchain. While other nations explore CBDCs, Bermuda’s direct use of a public blockchain could serve as a model for small jurisdictions worldwide, potentially accelerating real-world crypto adoption.
