The Bermuda Monetary Authority has reported continued progress on its Embedded Supervision pilot, an Innovation Hub initiative testing how technology-enabled, real-time data infrastructures could support regulatory oversight in decentralised and distributed financial markets. The project is designed to assess whether supervisory requirements can be embedded directly into financial infrastructure, shifting compliance from retrospective reporting to continuous, verifiable assurance. Following an earlier request for proposals, the first proof-of-concept pilot is underway with Chainlink Labs, Apex Group Ltd., Hacken and Blueprint. The pilot is exploring how policy logic, compliance conditions and assurance mechanisms can be expressed in verifiable, machine-readable form within blockchain infrastructure to provide real-time visibility while preserving confidentiality and avoiding additional reporting burdens. The BMA indicated the outcomes will inform its policy considerations for decentralised finance as it advances its digital asset regulatory regime under Bermuda’s Digital Asset Business Act. The Authority also signalled that further pilots may follow, including workstreams focused on on-chain reporting, tokenised financial instruments and AI-driven analytics.

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