Majuro, Republic of the Marshall Islands — November 19, 2025. The Government of the Republic of the Marshall Islands (RMI) has introduced a nationwide Universal Basic Income (UBI) program, marking the first country to implement a long-term, nationally funded UBI system. Payments to eligible citizens will begin later this month and continue on a quarterly basis.
The UBI program incorporates a digital payment option through Lomalo, a government-developed wallet application that provides citizens with blockchain-secured accounts. Payments can also be received through traditional methods, including physical checks and direct deposit.
A key component of the system is USDM1, a U.S. dollar–denominated government security recorded digitally and fully backed by short-dated U.S. Treasury bills. The structure allows electronic disbursements to be processed within the existing U.S. dollar financial framework. According to the government, digitizing issuance and settlement offers a way to reach residents across the nation’s 24 dispersed atolls, where access to banking services has historically been limited.
The government stated that Lomalo is intended to remove delays previously seen in transfers to outer islands, allowing benefit payments to be accessed electronically without relying on local banking infrastructure.
Government Position
Minister of Finance David Paul said the program aims to standardize income support delivery and improve access to government services across the country’s geographically dispersed communities. He noted that the introduction of a digital option is meant to supplement, rather than replace, existing payment channels.
Registration and Implementation
A nationwide registration campaign has enrolled more than 33,000 citizens, representing the largest coordinated outreach effort undertaken across the country’s atolls. All registered, eligible citizens are scheduled to receive the first UBI payment beginning in late November.
Background on USDM1 and Oversight
The RMI is the sovereign issuer of USDM1, which functions as a fully collateralized digital government bond. The instrument is governed by domestic laws, including the Fiscal Responsibility and Debt Management Act, the RMI Banking Act, and relevant investor protection and anti–money laundering frameworks aligned with current FATF standards.
Cleary Gottlieb advised on the structure of USDM1 and serves as the issuer’s counsel.
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Surus Trust Company, a U.S.-based trust entity, acts as Trustee, Custodian, and Collateral Agent for assets backing the bond.
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M1X Global works with the RMI under a public-private partnership; MI Financial Services is designated as Token Agent, Transfer Agent, and Paying Agent.
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Compliance and monitoring services are provided by Inca Digital, Guidepost Solutions, and Crossmint.
National Context
The Marshall Islands is a U.S. dollar–based sovereign nation operating under the Compact of Free Association (COFA) with the United States, renewed in 2024 and effective through 2043. The country maintains a corporate framework modeled on Delaware law and is home to one of the world’s largest ship registries. The nation also hosts a U.S. military installation at Kwajalein Atoll under long-term defense agreements.
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