Bermuda pilots real-time crypto enforcement with Chainlink

The Bermuda Monetary Authority completed an Embedded Supervision Solution pilot with Chainlink, Apex Group, Bluprynt and Hacken that automated issuer identity checks, proof-of-reserve verification and the blocking of noncompliant crypto transactions in real time.

The pilot ran on Ethereum’s Sepolia and Base Sepolia testnets and used two parallel tracks. One track tested issuer identity and on-chain compliance policy enforcement by combining Bluprynt’s Know Your Issuer framework with Chainlink’s Automated Compliance Engine and Hacken’s real-time monitoring. The other track tested proof-of-reserve checks and asset surveillance by pairing verified reserve data from Apex Group with Chainlink’s Secure Mint contracts and Hacken’s analytics.

Bluprynt validated legal identities and token contracts and translated requirements from Bermuda’s Digital Asset Business Act and Digital Asset Issuance Act into machine-readable rules. Chainlink’s Automated Compliance Engine evaluated those rules at the time of transaction. Decentralized oracle-based proof-of-reserve checks confirmed that off-chain assets matched on-chain liabilities. Chainlink’s Secure Mint stopped token issuance when reserves fell below required levels, while Chainlink’s Cross-Chain Interoperability Protocol preserved compliance metadata when assets moved across blockchains. Apex supplied verified reserve figures from neutral custodians, and Hacken’s Extractor platform scanned the blockchain in real time to detect anomalies and assign risk scores.

The consortium reported the system could flag and stop noncompliant transactions before settlement, identifying issues roughly 250 to 500 milliseconds after a transaction was added to the testnet. Examples of blocked activity included transactions where issuer credentials were missing or reserve requirements were not met.

The BMA outlined regulatory challenges the pilot highlighted for decentralized finance: the absence of a central counterparty in many DeFi systems, the need for anti-money-laundering frameworks adapted to anonymous protocols, rapid product innovation in digital assets, and jurisdictional uncertainty across cross-border digital asset flows. The authority said the sector requires tools that can supervise activity in near real time.

The consortium plans to continue working with the BMA on a phased rollout for production deployment. Planned extensions include enforcement of issuer licensing, multi-jurisdictional compliance checks, broader participation by market actors and iterative refinement of regulatory rules as the platform moves into production.

Separately, Bluprynt raised $4.25 million in seed financing from investors including Coinbase Ventures and Valor Capital Group to expand its on-chain compliance offerings. Apex Group, which manages about $3.5 trillion in assets across 52 countries, is acquiring Mercer Administration Services in Australia; that deal received clearance from the Australian Competition & Consumer Commission in March 2026.