The Republic of Marshall Islands (RMI) has completed the world’s first on-chain Universal Basic Income (UBI) payment using a digital native government bond, USDM1, via the Stellar blockchain.
Developed in partnership with the Stellar Development Foundation (SDF) and infrastructure provider Crossmint, the multimillion-dollar initiative is part of RMI’s national UBI program, known locally as ENRA, the Marshall Islands Ministry of Finance confirmed. The program replaces quarterly physical cash deliveries with direct digital transfers to eligible citizens, many of whom live across widely dispersed islands.
USDM1 is a government bond denominated in US dollars that is fully backed by short-term US government bonds. The bond is distributed through the Stellar Disbursement Platform to a purpose-built digital wallet app called Lomalo. Developed by Crossmint, Lomalo allows recipients to receive funds instantly via Crossmint wallets on the Stellar network.
In an exclusive statement to CoinDesk, a Treasury spokesperson said: “USDM1 is issued under New York law using a time-tested Brady bond structure that has supported sovereign finance for decades. Its basis is not regulatory discretion or political preference, but settled law.”
“U.S. Treasury securities are held by an independent trustee outside the control of any government or private issuer, and redemption rights are fixed, unconditional and legally enforceable,” the spokesperson added.
SDF CEO Denelle Dixon said the program exemplifies “what adoption looks like for blockchain technology,” enabling everyday financial access where it was previously lacking.
The government emphasized that USDM1 does not compromise the country’s monetary or technological sovereignty. “ENRA is a fiscal distribution program, not a currency initiative,” the spokesman said. “Each unit is issued one-to-one against short-dated U.S. Treasury securities held in trust, fully backed and legally segregated at all times.”
The rollout that was underway was shaped by the geography and infrastructure limitations of the Marshall Islands. “Distance, sprawl and limited physical infrastructure shape the realities of everyday life,” the spokesman said. “This was custom built for the Marshall Islands.”
A white paper published alongside the initiative outlines the broader policy and financial framework for USDM1.
