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ARTICLE · 16 JUNE 2025

Bermuda Paves The Way For Captive Insurers With New Stablecoin Policy

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The new policy permits Limited Purpose Insurers (Captive Classes) to utilize recognized stablecoins for various critical functions, including premium collection, claims payment, and as part of their capital base.

BermudaInsurance
Brad Adderley
Brad Adderley
Ojeda Smith
Ojeda Smith
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The Bermuda Monetary Authority (BMA) has announced a significant new policy framework that allows captive insurers to integrate recognized stablecoins into their operations, marking a progressive step for the island's competitive insurance jurisdiction. This move comes in response to increasing market demand and reinforces Bermuda's commitment to fostering responsible innovation while maintaining robust regulatory oversight.

The new policy permits Limited Purpose Insurers (Captive Classes) to utilize recognized stablecoins for various critical functions, including premium collection, claims payment, and as part of their capital base. Notably, this can be done without requiring additional Innovative General Business (IIGB) or Innovative Insurer (Long Term) (IILT) class licenses, subject to BMA approval.

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