Bermuda’s digital asset foresight bearing fruit

Only eight years on, McKinsey recently reported that industry estimates suggest that by 2030, the global market value of stablecoins will be between $2 trillion and $4 trillion.

Importantly, the report also highlighted that in 2025, the growth of the global fintech market outpaced the broader financial services industry by more than 15 per cent.

The inescapable truth is that digital assets and fintech generally, will play a major part in the future of the financial markets and global economy.

Here in Bermuda, that future will include a growing interest in tokenisation, the merging of digital assets with traditional finance, and the aim of making the island an on-chain economy.

Bermuda’s early-to-market approach with respect to digital asset business mirrors the island’s trailblazing legislative path taken in 1978 with the passing of the Insurance Act.

Just as it paved the way for the growth of Bermuda as a prominent domicile for captive insurance companies, so the island’s digital asset business legislation has invited innovators into that space.

Today, Bermuda’s continued evolution within an environment of credible regulation, has helped to position our captive industry as among the world leaders.

Going forward, the digital asset business space could similarly write a large part of Bermuda’s economic future.

Since enacting Daba in 2018, building on the regulatory experience of its insurance base, the island has credibly and consistently regulated the space, leading to confidence of investors, start-ups and established digital asset businesses.

And just as prohibitive regulation in the United States prompted the early interest in Bermuda as a jurisdiction for captives in the 1960s, uncertainty and regulatory tardiness today characterises much of the state of play in relation to regulating digital assets in many of our global competitors.

The continued development of the digital asset business space in Bermuda, built on almost a decade’s worth of regulatory infrastructure, matters significantly, as the sector relies on consistent clarity to build confidence and growth over time.

Early clarity and regulatory certainty matters in this space, and while quality over quantity should remain a driving factor, improvement and regulatory fine-tuning should also stay at the forefront, as it has to date.

By way of analogy, in 1981 — three years after Bermuda’s Insurance Act was passed — Vermont enacted its insurance legislation, and registered its first captive, and it is now the leading domicile in the world.

With respect to digital assets, Bermuda wants to not only be recognised as one of the first jurisdictions to market, it wants to remain a leader of it.

While adaptation across various traditional financial sectors will undoubtedly continue, the development of Bermuda as a hub for digital asset business poses a great opportunity for the island to leverage the regulatory maturity gained in the insurance space and be a significant participant in the convergence of insurance and digital assets.

Embracing innovative licence categories under the Insurance Act, entities are now pressing ahead with exciting developments. Bitcoin-denominated insurance products, and stablecoins being used for premiums, claims and capital — fortuitously in the context of captive insurance — are only the beginning of what is possible.

Employment and wider local opportunities must also be considered among the benefits of growth in the space.

For example, the insurance industry already employs significant numbers of people directly in Bermuda, with many more servicing the industry indirectly. As the development in digital asset business continues, so too will the need for continued growth in local compliance, insurance and audit professionals whose primary focus is on this space.

The chapters of Bermuda’s economic future are being written now. The regulatory and legal history of the island tells us that committing and investing development resources early in emerging sectors that have significant global growth potential, leads to significant gain for Bermuda.

First Published in The Royal Gazette, Legally Speaking column, July 2026