Chainlink and Apex Group have successfully completed a pilot program for institutional-grade stablecoin infrastructure in Bermuda. This initiative was conducted in collaboration with the Bermuda Monetary Authority (BMA) as part of its Innovation Hub, marking a significant step toward modernizing supervisory oversight within the digital asset sector.
The primary objective of this collaboration was to establish a unified, fully compliant, and institutional-ready stablecoin framework, designed to support the BMA’s groundbreaking Embedded Supervision Initiative.
Chainlink & @ApexGlobalGroup have successfully created an institutional-grade stablecoin infrastructure solution supporting the Bermuda Monetary Authority’s embedded supervision initiative.https://t.co/9nZFjzwP5i
— Chainlink (@chainlink) November 5, 2025
Conducted in collaboration with the Bermuda Monetary Authority… pic.twitter.com/nIcuNsUu4I
Bermuda Monetary Authority's Embedded Supervision
The BMA is the regulatory body for Bermuda’s financial sector, overseeing a substantial number of institutions, including over 1,200 registered insurers on the island. The authority has been actively pursuing an "embedded supervision" model. This approach aims to integrate compliance and reporting logic directly within protocols, thereby reducing the need for manual oversight and enabling continuous monitoring, particularly for stablecoin collateral and circulation.
The BMA's official website lists a joint Embedded Supervision Pilot involving Chainlink Labs, Hacken, Bluprynt, and Apex. The stated goal of this pilot is to achieve real-time, regulator-grade monitoring across legal, operational, and technical dimensions.
Chainlink Powers Real-Time Oversight
The newly developed infrastructure, which is currently operational on a test network, leverages Chainlink's robust oracle platform. It also incorporates multiple Chainlink standards and services, including the Cross-Chain Interoperability Protocol (CCIP), the Automated Compliance Engine (ACE), and Proof of Reserve (PoR). Chainlink ecosystem participants Bluprynt and Hacken were also instrumental in the development of this framework.
This innovative solution empowers regulated asset issuers to utilize Chainlink's network for enhanced collateral transparency. It provides continuous, real-time visibility into a stablecoin's backing assets directly on-chain through Chainlink Proof of Reserve. Furthermore, it implements an issuance control feature that prevents unauthorized token creation by ensuring that the circulating supply never exceeds the actual reserves held.
In addition to these features, Bermuda-specific operational and regulatory requirements are automatically enforced on-chain using the Automated Compliance Engine (ACE). The Cross-Chain Token (CCT) standard facilitates the seamless, zero-slippage transfer of stablecoins across different blockchain networks.
Integrated Services Enhance the System
The system relies on Apex Group to relay on-chain data for various asset servicing functions. These include the custody of underlying collateral, comprehensive reserve management, and tokenization processes facilitated by Tokeny. Security is further bolstered by Hacken Extractor, which provides immediate alerts regarding stablecoin risks, activity from sanctioned wallets, and any suspicious anomalies. Transparency is also a key component, secured by Bluprynt’s Know Your Issuer (KYI) solution, which cryptographically links verified entities to their respective minting wallets.
“I’m very excited about our embedded supervision solution with the Bermuda Monetary Authority to advance institutional-grade, regulatory-friendly stablecoins in Bermuda. It’s exciting to see Apex Group at the forefront of the future of finance; their commitment to advancing secure and trusted onchain financial systems aligns with the direction global finance is rapidly moving toward,” stated Sergey Nazarov, Co-Founder of Chainlink.
Peter Hughes, CEO at Apex Group, added, “Partnering with the Bermuda Monetary Authority and Chainlink on this solution has been a significant step forward. Apex Group’s asset servicing capabilities were seamlessly integrated with Hacken’s data integrity solutions and Blueprynt’s identity transparency layer, all brought together through Chainlink’s industry-standard oracle platform. The BMA’s forward-looking approach made it possible to deliver a production-ready, regulator-aligned stablecoin framework that operates with real-time compliance and collateral assurance.”
It is important to note that Chainlink and Apex have emphasized that this pilot is not a consumer launch and does not signify regulatory authorization for a live stablecoin operation in Bermuda. The BMA's program continues to serve as a testing ground for supervisory innovation rather than a direct pathway to commercial deployment.
Should this model be advanced beyond the testnet phase, it would necessitate addressing governance questions concerning oracle dependencies, policy-change management, and cross-chain incident response. These are precisely the issues that the BMA’s embedded supervision agenda is designed to thoroughly investigate before any potential production deployment.