BMA eyes stablecoin opportunity for Bermuda captives

The Bermuda Monetary Authority (BMA) is looking to position Bermuda’s captive insurance sector to take advantage of growing stablecoin adoption across global financial markets, Captive Review  reports from the Bermuda Captive Conference this week.

George Alayon (pictured), deputy director of FinTech supervision at the BMA, highlighted the regulator’s decision last year to allow captives to hold recognised stablecoins up to 25% of capital and surplus, subject to regulatory approval.

Stablecoin is a type of digital asset which has its value related to a real-world asset. It is fiat-backed and fully reserved, redeemable at par value, and intended for settlement and liquidity rather than speculation.

Alayon said the stablecoin market has grown rapidly, with global supply now exceeding $320bn and monthly transaction gross throughputs reaching around $10tn.

To read the full story on Captive Review click here. 

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.