Enforcement Needs Precision: Bermuda Contributes to Global Layer One Paper Showing Privacy and Enforceability Need Not Be a Trade-Off

NEW YORK, June 22, 2026 /PRNewswire/ -- Bermuda, a privacy protocol for regulated digital assets, today announced its contribution to the Global Layer One (GL1) white paper on programmable compliance. The paper was developed with contributions from Banque de France, the International Monetary Fund, Kinexys by J.P. Morgan, the Monetary Authority of Singapore, and Standard Chartered, with additional input from Bermuda, the BIS Innovation Hub, Chainlink Labs, and GLEIF.

The paper sets out a compliance architecture for tokenised financial assets and includes Bermuda as a privacy solution for enforcing asset- and transaction-level policies in private digital-asset transactions.

The central insight aligns with the principle on which Bermuda is built: privacy and enforceability do not have to be a trade-off.

For regulated institutions, full public-chain transparency is often incompatible with commercial confidentiality and client privacy. Every transaction can expose counterparties, amounts, and asset types. But the alternative, full opacity, can leave issuers and regulators with blunt enforcement tools. When action is required, the only available lever may be to freeze an entire pool, affecting compliant funds and legitimate users alongside illicit activity.

Bermuda was designed to remove that false choice. The same policy logic an issuer applies in a public environment can be enforced in a private one, on every transfer, swap, or settlement, before value moves. Issuers define the relevant policies; Bermuda enforces them without becoming a trusted counterparty or altering the policy itself. The protocol uses client-side zero-knowledge proofs and runs on EVM-compatible networks, requiring no contract rewrites.

"Enforcement needs precision," said Dr. Jan Philipp Fritsche, Co-Founder of Bermuda, who previously worked at the European Central Bank and served as Managing Director of Oak Security, a leading Web3 Cybersecurity firm. "Recent incidents have shown what happens when precision is missing: issuers can be forced into blunt measures that risk freezing an entire protocol and the compliant users inside it. Our contribution to the GL1 paper reflects what we have argued from the start: privacy and enforceability can coexist, applied surgically rather than with a sledgehammer."

Bermuda has also demonstrated atomic private cross-chain delivery-versus-payment together with Linea by Consensys — combining privacy by Bermuda, interoperability by Linea, and security by Ethereum — showing how this architecture can work in practice across chains.

The full Global Layer One white paper is available here.

About Bermuda
Bermuda is a permissionless privacy protocol that enables fully private transactions while enforcing programmable, issuer-defined policies on every operation. Built on client-side zero-knowledge proofs and compatible with native tokens across EVM chains, Bermuda enables institutions to transact, trade, and settle privately without sacrificing regulatory enforceability. Learn more at bermudabay.xyz.

SOURCE Bermuda