Notice - Consultation Paper - Guidance Note on the Use of Recognised Stablecoins in Insurance and Investment Funds (2026-07-20)

Summary

The BMA has published a Consultation Paper seeking industry feedback on a proposed Guidance Note that would set out its supervisory expectations for how eligible insurance entities and investment funds may use recognised stablecoins for operational, settlement, treasury or investment-related purposes. The guidance does not grant blanket permission to use stablecoins; applicability and any notification or approval requirements will depend on the entity, sector, use case and regulatory framework. Traditional special-purpose insurers remain outside the proposed framework for now.

• Eligibility and governance: Sets expectations for stablecoin eligibility, governance and risk management.
• AML/ATF and sanctions: Covers AML/ATF, sanctions screening, custody, and wallet/private-key management controls.
• Valuation and settlement risk: Addresses valuation, liquidity and redemption risk, plus contractual settlement and transaction finality.
• Disclosure and notification: Outlines disclosure, reporting and supervisory notification requirements.
• Scope of entities: Applies to eligible Limited Purpose Insurers and investment funds, with related expectations for intermediaries, service providers and intra-group arrangements.

This is a consultation stage document, not a final rule. The BMA is inviting comments from regulated entities, industry associations, professional advisers, service providers and other stakeholders, to be submitted to policy@bma.bm by 30 September 2026.

Key obligations

• Stakeholders wishing to respond must submit comments on the Consultation Paper and proposed Guidance Note to policy@bma.bm by 30 September 2026.

Applies to

Limited Purpose Insurers, investment funds, insurance-linked securities structures, intermediaries, service providers, industry associations, professional advisers

Deadlines

• 30 September 2026: Deadline for submitting comments on the Consultation Paper and proposed Guidance Note to policy@bma.bm