Bermuda is pursuing a bold plan to migrate its entire economy onchain, an initiative aimed at streamlining settlements and democratizing wealth creation through fractional ownership. While the country faces skepticism over technical readiness and social acceptance, advocates argue that onchain models allow individuals to become capital allocators rather than just earners.
Bermuda’s Digital Evolution
Bermuda is positioning itself at the forefront of the digital finance revolution. According to a recent report, the island nation plans to migrate its entire economic infrastructure onchain, in partnership with industry leaders Coinbase and Circle. By transitioning from traditional, high-fee payment rails to a system powered by USDC and blockchain technology, Bermuda aims to lower transaction costs for local merchants, enhance financial inclusion, and stimulate domestic economic growth.
Although hailed as a pioneering example of digital regulation, the initiative has drawn skepticism. Concerns range from grassroots distrust among locals to systemic doubts from financial analysts, with many questioning whether Bermuda is prepared for the technical and social overhaul required.
A central debate is whether an onchain economy can meaningfully address the wealth gap—something traditional fintech apps have seemingly failed to do. Experts argue that fintech has digitized old banking structures without dismantling gatekeepers, leaving users as customers subject to intermediaries, restrictions and fees. Lux Thiagarajah, Chief Commercial Officer (CMO) at Openpayd, contends that onchain models shift the focus from payments to ownership:
“With on-chain, assets live on public rails and anyone can directly hold rights, yield-bearing assets, and tokens. Wealth grows from ownership, not cheaper payments. Fractional ownership lowers barriers, enabling more people to become capital allocators rather than just earners.”
By reducing investment thresholds and removing banking intermediaries, individuals can begin building wealth regardless of location or ticket size.
Transparency and the Stakeholder Economy
Onchain infrastructure also replaces opaque, centralized power with transparent and auditable code. Experts note that decentralization curtails monopolistic value extraction and prevents local opportunities from being siloed. Workers paid in liquid, yield-bearing tokens can directly share in the upside of the projects they build, creating a stakeholder economy that goes beyond “faster payments” or slicker interfaces.
Still, inclusivity requires permissionless protocols, which may clash with institutional demands for compliance. Ivo Grigorov, CEO of Real Finance, argues that neutrality at the base layer is essential:
Compliance should live at the asset and application layer. Institutions don’t need control over the chain itself, but over issuance, access, and risk. When embedded properly, permissionless infrastructure and institutional requirements can coexist.
Fractional Ownership as a Social Remedy
A Coinbase Institute study highlights another challenge: capital income is outpacing labor income, leading to illiquid markets and a “patrimonial” society where inheritance, not work, drives wealth. This dynamic fuels perceptions of a rigged system, political polarization, and social fragmentation. Fractional ownership, however, offers a potential remedy. Grigorov explains:
“When capital markets are inaccessible, people are excluded from compounding entirely. On-chain fractional ownership enables global participation in productive assets, even where traditional systems fail.”
Finally, balancing transparency with corporate privacy remains critical. Grigorov emphasizes that public ledgers can verify settlement, ownership, and integrity without exposing sensitive information. Selective disclosure, encryption, and role-based access allow institutions to maintain confidentiality while benefiting from public verification.
“The future is verifiable without being exposed.”
FAQ ❓
- What is Bermuda’s digital finance plan? Bermuda aims to move its entire economy onchain with Coinbase and Circle.
- What technologies are being used? The roadmap focuses on stablecoin payments and tokenization of real-world assets.
- Why is this initiative controversial? Skeptics question Bermuda’s readiness for the technical and social overhaul required.
- How could it impact wealth inequality? Experts say fractional ownership onchain may help close the wealth gap by enabling asset access.
