The Marshall Islands launches the world's first blockchain-based universal basic income program on the Stellar network

According to CoinDesk, the Republic of the Marshall Islands (RMI) has completed the world's first on-chain distribution of Universal Basic Income (UBI) using the digital native sovereign bond USDM1 on the Stellar blockchain.

The country's Ministry of Finance confirmed that this multi-million dollar initiative was developed in collaboration with the Stellar Development Foundation (SDF) and infrastructure provider Crossmint, as part of the local UBI program ENRA. This program replaces quarterly physical cash distributions with digital transfers, benefiting many eligible citizens living across various islands. USDM1 is a sovereign bond denominated in US dollars, fully backed by short-term U.S. Treasury securities, and distributed through the Stellar issuance platform to a customized digital wallet application called Lomalo.

A spokesperson for the Marshall Islands Ministry of Finance stated that USDM1 is issued under New York law, based on established legal frameworks, rather than regulatory discretion or policy preference. The U.S. Treasury collateral is held by an independent trustee, with redemption rights being fixed, unconditional, and legally enforceable. ENRA is a fiscal distribution program, issuing one unit for every one unit in trust short-term U.S. Treasury securities, fully backed and legally isolated throughout the process. The government emphasizes that USDM1 does not compromise the country's monetary or technological sovereignty. A white paper released alongside the initiative outlines its broader policy and financial framework.