The Bermuda Monetary Authority (BMA) has launched a consultation on the use of recognised stablecoins within Bermuda's investment fund and insurance sectors.
The proposed guidance note outlines the regulator’s expectations for the controlled use of recognised stablecoins by eligible Bermuda-regulated entities and structures, with an initial focus on Bermuda investment funds, limited purpose insurers, intermediaries, and ILS funds structures.
In the consultation, the BMA noted that global stablecoin issuance exceeded $300bn as of mid-2026 and said stablecoins are moving from niche instruments used primarily in digital asset markets to enhancing operations in institutional finance – supporting payment, settlement, treasury management, collateral mobility and liquidity across insurance, reinsurance, investment funds and capital markets.
The regulator pointed to the United States’ Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in July 2025, the implementation of the European Union’s Markets in Crypto-Assets Regulation (MiCA) and the introduction of stablecoin licensing frameworks in jurisdictions like Hong Kong, Singapore and others as evidence of this shift.
“Industry projections suggest continued growth driven by the tokenisation of real-world assets, the expansion of cross-border payment use cases and increasing institutional adoption,” the BMA said.
“While current demand remains concentrated outside the United States and primarily in crypto-asset settlement, the passage of the US GENIUS Act and associated regulatory developments in other major jurisdictions signal a material shift towards institutional and commercial stablecoin use. These developments have potential implications for Bermuda-regulated entities and structures and warrant monitoring and consideration.
“The BMA’s view is that Bermuda's insurance, Insurance-Linked Securities (ILS) and investment fund sectors, characterised by their speed, innovation capacity and international connectivity, are well-placed to benefit from these developments.”
The consultation runs until 30 September 2026.
