The Bermuda Monetary Authority plans to introduce legislative and regulatory changes in 2026 aimed at enabling tokenised financial instruments and strengthening its oversight of payments, according to its newly released business plan.

In the document, the regulator says it will put forth proposals to support tokenisation and other digital investments, including amendments to legislation to clarify how tokenised instruments and related services are regulated. The focus will be on establishing clear rules around custody, disclosure, governance and market integrity, which have emerged as key questions to answer before wider adoption of blockchain-based finance.

The report said the regulator will develop “proposals for tokenisation and digital innovative investments by proposing legislative amendments to enable tokenised instruments and related services, clarifying perimeter, custody and segregation, disclosure, governance and market-integrity requirements.”

The BMA’s plans suggest a move beyond pilot projects towards embedding tokenisation within Bermuda’s mainstream regulatory framework, while stopping short of committing to any public-sector or government-led migration of assets onchain.

In the document's foreword, the BMA chief executive, Craig Swan, stated: “In alignment with our overarching mission, the BMA will continue to embrace forward-looking supervision and responsible innovation, enabling us to keep pace with today’s rapidly changing landscape.”

Alongside tokenisation, the authority is prioritising the Payment Services Act, with 2026 as the year when licensing classes under the regime will be firmed up. The regulator said it aims to ensure consumer protection and supervision, while also helping along the transition for firms already operating in the market.

The BMA’s focus on tokenisation and payments comes against the backdrop of a broader government push to position Bermuda as the world’s first “fully onchain” national economy.

The Government announced the initiative at the World Economic Forum in Davos, saying it intends to embed digital asset infrastructure across government, business and financial services through an expanded partnership with Coinbase and Circle.

While details and timelines have yet to be fully outlined, officials have said government agencies are expected to begin rolling out stablecoin-based payments, with banks and insurers integrating tokenisation tools, alongside nationwide digital finance literacy programmes.

The payments initiative is expected to affect a range of firms, including stablecoin issuers, payment processors and wallet providers, many of which have been so far operating under transitional or legacy arrangements.

The initiative will focus on “operationalising and finalising licensing classes under the Payment Services Act to meet consumer-protection expectations and proportionate, risk-based supervisory requirements while ensuring efficient migration for existing market participants,” the report said.

The BMA said more details on proposed amendments and licensing frameworks will be developed during 2026, alongside talks with stakeholders.