Marshall Islands Launches World’s First On-Chain Universal Basic Income Program

TLDR:

• The Marshall Islands completed the first on-chain UBI distribution using a digitally native sovereign bond.
• USDM1 is fully backed by short-term U.S. Treasury bills and issued under New York law.
• The Stellar blockchain enables direct digital transfers, replacing quarterly physical cash deliveries.
• ENRA is a fiscal distribution program and does not alter the nation’s monetary sovereignty.

Marshall Islands on-chain UBI has officially moved into execution as the Republic of the Marshall Islands completed the world’s first universal basic income disbursement conducted entirely on-chain. 

The rollout uses a digitally native sovereign bond issued and distributed via the Stellar blockchain.

The program replaces physical cash deliveries with digital transfers to eligible citizens living across widely dispersed islands. 

Government officials confirmed the initiative operates under ENRA, the country’s national universal basic income framework.

Marshall Islands on-chain UBI is presented as a fiscal distribution mechanism rather than a monetary experiment. 

Authorities stated the structure preserves existing legal and financial foundations while modernizing delivery infrastructure.

USDM1 Bond Anchors the ENRA Distribution Model

The ENRA program is powered by USDM1, a U.S. dollar–denominated sovereign bond issued by the Republic of the Marshall Islands. 

The instrument is fully backed by short-term U.S. Treasury bills held in trust by an independent trustee.

In statements shared publicly and referenced in official communications, the Finance Ministry confirmed USDM1 is issued under New York law. 

Officials described the structure as aligned with long-established Brady-bond models used in sovereign finance.

Ministry representatives added that redemption rights are unconditional and legally enforceable. They emphasized that collateral remains segregated at all times and is not subject to regulatory discretion or issuer control.

Stellar Infrastructure Enables Digital UBI Delivery

Distribution of Marshall Islands on-chain UBI occurs through the Stellar Disbursement Platform developed with the Stellar Development Foundation and Crossmint. Funds are delivered directly into a custom-built digital wallet application named Lomalo.

The Lomalo wallet allows recipients to receive USDM1 instantly through Crossmint wallets operating on the Stellar network. 

This approach eliminates logistical challenges tied to quarterly cash distributions across remote islands.

Executives from the Stellar Development Foundation noted in social media posts that the deployment reflects practical blockchain adoption. They cited expanded financial access for communities previously limited by infrastructure constraints.

Government officials reiterated that Marshall Islands on-chain UBI does not affect national monetary sovereignty. ENRA is described as a fiscal transfer program, not a currency issuance initiative.

Each unit of USDM1 is issued one-to-one against U.S. Treasury collateral, according to the Finance Ministry. 

Officials stated that the digital bond structure remains fully backed and legally segregated throughout its lifecycle.

A white paper released alongside the launch outlines the policy and legal framework governing USDM1. Authorities said the design was shaped by the country’s geography, distance challenges, and long-term infrastructure needs.

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