At the Solana Breakpoint conference in Abu Dhabi, G Clay Miller, partner at Penrose Partners, outlined how Bermuda’s forward-thinking regulatory framework has positioned the island as a global leader in digital finance. Miller discussed how Bermuda’s approach to regulation has attracted insurers, stablecoin issuers, and blockchain innovators while offering a model other jurisdictions are now studying closely.
Founded in Canada, Penrose Partners specializes in digital asset strategy, business development, and education. The firm advises governments, financial institutions, and blockchain companies worldwide. Notably, Penrose serves as the digital finance advisor to Bermuda’s Ministry of Finance, playing a central role in shaping the island’s digital asset ecosystem.
Bermuda first gained international attention in 2018 with the launch of the Digital Asset Business Act, becoming the first country to establish a comprehensive regulatory framework for digital assets. The legislation was originally designed to protect Bermuda’s $3 trillion reinsurance industry while allowing responsible innovation. Since then, the regulatory framework has evolved to include stablecoins and artificial intelligence, with nearly 50 licensed digital asset companies now operating under Bermuda’s oversight.
Miller emphasized that Bermuda’s strength lies in its ability to integrate traditional financial sectors with emerging technologies. One example is Penrose portfolio company Onre, which operates under both insurance and digital asset licenses. Onre focuses on yield-bearing stablecoins linked to reinsurance premiums, illustrating how blockchain infrastructure can enhance capital efficiency within established financial markets.
As digital finance continues to evolve, Bermuda is advancing initiatives aimed at reducing reliance on cash and improving payment efficiency through stablecoins. Miller noted that small businesses on the island often face high transaction costs due to international intermediaries. Stablecoin adoption offers a way to lower fees and improve margins for local merchants.
Penrose has supported this transition through educational workshops for businesses and financial institutions. A notable milestone was the Digital Finance Forum, which featured the world’s first fully licensed and regulated USDC airdrop. In partnership with Circle and Coinbase, nearly 50,000 USDC was distributed to attendees, enabling real-world testing of stablecoin payments across local businesses.
Miller has also championed stablecoin usage at the grassroots level, using USDC for everyday expenses such as rent and groceries. These real-world use cases help demonstrate how digital currencies can integrate seamlessly into traditional commerce, building trust and familiarity among consumers and merchants.
Beyond payments, Penrose collaborates with local organizations, including the Bermuda Economic Development Corporation, to foster entrepreneurship and innovation. These efforts focus on education, regulatory clarity, and ecosystem development to ensure long-term sustainability.
Looking ahead, Miller pointed to upcoming regulatory developments that will further distinguish Bermuda. Topics expected at the next annual conference include AI governance standards and frameworks that could classify AI agents as legal entities. Such initiatives could open new avenues for financial services innovation while enhancing consumer protection.
By combining regulatory clarity, institutional engagement, and local adoption, Bermuda continues to redefine what a modern digital finance jurisdiction can look like. Miller and the Penrose team view this holistic approach as essential for building a resilient and globally relevant digital asset ecosystem.
As countries worldwide seek to balance innovation with oversight, Bermuda’s experience offers a compelling blueprint. With leadership focused on responsible growth, stablecoin integration, and emerging technologies, Bermuda remains at the forefront of the evolving digital asset landscape.