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Bermuda Monetary Authority consults on stablecoin use in ILS
BMA says global stablecoin issuance has topped $300 billion as of mid-2026 and is exploring how that could affect Bermuda limited purpose insurers and ILS structures.
Bermuda’s insurance-linked securities sector is positioned to benefit from stablecoin growth, the Bermuda Monetary Authority said, linking the island’s ILS market to stablecoins’ expanding role in institutional finance.
The BMA is running a consultation, seeking input on the use of stablecoins across insurance, ILS and investment funds, as stablecoins move from niche digital asset usage toward supporting payment, settlement, treasury management, collateral mobility and liquidity.
In its paper, the BMA said global stablecoin issuance has exceeded $300 billion as of mid-2026, with the market dominated by a small number of USD pegged issuers, and cited industry expectations for continued growth tied to real-world asset tokenisation, cross-border payment use cases and greater institutional adoption.
The authority said stablecoin use in ILS could bring faster and lower-cost cross-border settlement, more efficient collateral deployment, improved treasury flexibility, and support for emerging parametric and programmable insurance structures, while it consults on draft guidance for Bermuda limited purpose insurers and related intermediaries.