We report on the progress of bismuth oxide glass holey fibers for nonlinear device applications. The use of micron-scale core diameters has resulted in a very high nonlinearity of 1100 W-1 km-1 at 1550 nm. The nonlinear performance of the fibers is evaluated in terms of a newly introduced figure-of-merit for nonlinear device applications. Anomalous dispersion at 1550 nm has been predicted and experimentally confirmed by soliton self-frequency shifting. In addition, we demonstrate the fusion-splicing of a bismuth holey fiber to silica fibers, which has resulted in reduced coupling loss and robust single mode guiding at 1550 nm.