Bermuda’s Financial Regulator Pilots On-Chain Stablecoin Oversight With Extractor’s Real-Time Monitoring

The on-chain stablecoin compliance platform, developed by Hacken, Chainlink, Apex Group, and Bluprynt, gives the Bermuda Monetary Authority (BMA) real-time insight into stablecoin reserves and circulation while automating on-chain compliance and continuous risk monitoring.

The pilot, conducted through the BMA’s Innovation Hub, brought together Chainlink, Apex Group, Bluprynt and Hacken to test a new regulatory model where compliance checks are embedded into blockchain infrastructure rather than performed through delayed, after-the-fact reporting. The initiative explored how regulators can gain continuous visibility into stablecoin backing, issuance, and on-chain behavior while automating key supervisory controls.

Extractor by Hacken contributed the real-time compliance and risk monitoring layer, enabling the regulator to observe how supervised assets and protocols behave on-chain as events unfold. This allowed the BMA to simulate a supervision model where breaches, anomalies, or risk signals are detected immediately rather than weeks or months later.

On-Chain Compliance For Bermuda’s Financial Regulator

A recent pilot initiated through a RFP by the Bermuda Monetary Authority (BMA) successfully demonstrated how regulatory supervision can be embedded directly into blockchain infrastructure to ensure stablecoins remain compliant, transparent, and secure. The project brought together Hacken, Chainlink, Apex Group, and Bluprynt in a collaborative implementation of “compliance by design,” where regulatory controls operate continuously at the protocol level.

Each participant contributed a distinct layer of the supervisory stack.

• Extractor by Hacken – Provided real-time compliance intelligence, AML risk detection, and continuous oversight of on-chain behavior, giving regulators a unified view of systemic and transactional risk.
• Chainlink – Acted as the enforcement and connectivity layer, applying policy logic to ensure minting did not exceed verified reserves, issuers remained licensed, and stablecoins moved only between eligible entities.
• Apex Group – Supplied custody, fund accounting, and reserve attestations, supporting proof-of-reserves validation through institutional-grade data.
• Bluprynt – Enabled “know-your-issuer” controls by cryptographically linking licensed real-world entities to their on-chain minting authorities.

This decentralized, multi-vendor supervision model gives regulators direct visibility into stablecoin issuance, circulation, and backing in real time. Rather than relying on periodic reporting, supervisory rules are enforced automatically through live data feeds and on-chain controls.

Extractor: Real-Time Threat Intelligence for Regulators

As part of this pilot, Hacken demonstrated Extractor, a real-time on- and off-chain threat detection and response platform designed to support embedded supervision for regulators. The platform provides a unified, live view of protocol activity, risk exposure, and compliance status across blockchain networks.

Within the BMA pilot context, Extractor by Hacken illustrated how regulators can:

• continuously monitor smart-contract behavior and on-chain activity,
• validate proof-of-reserves and collateralization in real time,
• generate live risk scores for supervised protocols,
• receive automated alerts when compliance thresholds are breached.

This approach reduces reliance on manual reporting, accelerates regulatory response, and allows supervisors to act proactively before issues escalate.

Advancing BMA’s Stablecoin Oversight with A3

The current use case is only a pilot, but we envision full integration. As a next step, Hacken proposes integrating A3, our most advanced real-time regulatory oversight platform. Built on the same telemetry core as Extractor, A3 can significantly strengthen the Bermuda Monetary Authority’s stablecoin compliance by providing highly customizable monitoring, advanced analytics, and enhanced supervisory controls tailored to the regulator’s specific needs. Hacken’s A3 has already been successfully deployed by other financial authorities, demonstrating its effectiveness in supporting robust, real-time oversight.

A Blueprint for Global RegTech/SupTech Innovation

The BMA pilot establishes a new blueprint for Supervisory Technology (SupTech) and Regulatory Technology (RegTech) in digital asset markets—one that moves oversight from periodic reporting to continuous, on-chain supervision.

This approach directly aligns with the direction of leading regulatory regimes, including ADGM’s digital asset framework, the EU’s MiCA regulation, and the emerging U.S. GENIUS Act, all of which signal a move toward real-time oversight, enforceable compliance controls, and clearer supervisory accountability.

Public Validation at Hacken Trust Summit

This model was shared and stress-tested with dozens of capital markets leaders, DeFi operators, and regulators during the Hacken Trust Summit 2025 at the NASDAQ MarketSite in New York, reflecting growing global demand for regulatory frameworks that operate at the speed of blockchain.

The approach was discussed during the panel “Compliance-by-Design: Building the Digital Asset Ecosystem,” featuring Denys Ivanov (Chief Product Officer at Hacken) Kostiantyn Dmitriiev (Chainlink Labs), Daniel Coheur (Apex Group & Tokeny), and Juan Carlos León Villarreal (Bluprynt). The discussion focused on embedding regulatory, security, and compliance logic directly into digital asset infrastructure—making compliance native, automated, and enforceable on-chain.

Embedded Supervision in Practice

The BMA pilot illustrates a broader shift in regulatory practice: regulators are no longer merely defining rules, but actively participating in how compliance is implemented. Instead of acting as passive recipients of reports, regulators like the BMA and ADGM can define risk parameters, thresholds, and response logic that operate continuously on-chain—an approach increasingly required by regimes such as MiCA and VARA, and anticipated under GENIUS.

As a next step, Hacken proposes integrating A3, our most powerful real-time regulatory oversight platform. Built on the same telemetry core as Extractor, A3 provides deeper customization, advanced analytics, and enhanced supervisory controls for stablecoins at the Bermuda Monetary Authority, subject to the regulator’s decision.

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