M1X Global announced on July 6 in New York that it has raised additional Seed financing led by Paradigm, bringing its total funding to $8.5 million just 14 weeks after its public launch. The oversubscribed round, which also included Breed VC, will support the institutional expansion of USDM1, a sovereign digital bond backed 1:1 by short-duration U.S. Treasuries and designed for regulated 24/7 capital markets.
The financing reflects growing institutional interest in blockchain infrastructure that enables governments to issue sovereign financial instruments directly on public blockchain networks rather than through traditional market infrastructure.
Sovereign debt moves on-chain
M1X Global works with governments to develop blockchain-based sovereign financial infrastructure. Its flagship partnership with the Republic of the Marshall Islands produced USDM1, the first U.S. dollar-denominated sovereign bond issued natively on a public blockchain.
Unlike privately issued stablecoins or tokenized cash products, USDM1 combines the legal protections of sovereign debt with blockchain-native settlement and programmability. The instrument offers T+0 settlement, programmable transferability, full collateralization by U.S. Treasury securities, and legal protections under New York law.
M1X Global coordinated the issuance together with an ecosystem of partners, including Cleary Gottlieb, Stellar Development Foundation, Anchorage Digital Bank, Guidepost, Inca Digital and Crossmint. The project also aims to expand access to government financial services across Pacific island economies.
Built for institutional collateral markets
The company positions USDM1 not simply as a digital asset but as institutional-grade sovereign collateral compatible with existing financial market infrastructure.
According to M1X Global, the instrument has already been evaluated through institutional working groups involving major financial institutions and market infrastructure providers, including:
Bank of America
Citadel Securities
Virtu Financial
Tradeweb
DTCC
The company said the structure supports bankruptcy-remote custody, look-through treatment to High Quality Liquid Assets (HQLA), and compatibility with ISDA collateral and legal netting frameworks, enabling potential use in repo, margin and institutional financing transactions.
Funding signals confidence in sovereign financial infrastructure
Paradigm, one of the leading investors in frontier technologies and digital assets, led the financing with participation from Breed VC.
Mark Lurie said the investment will help expand the infrastructure supporting sovereign digital financial instruments and accelerate institutional adoption of USDM1.
"Paradigm's investment is an important milestone for M1X Global, strengthening our ability to scale the infrastructure behind sovereign financial instruments and to accelerate the build-out of systems that can support their use across regulated markets."
Jordan Goldman said early institutional deployment demonstrates that sovereign blockchain instruments can improve both government financial services and the availability of high-quality collateral for around-the-clock capital markets.
"These assets can improve access to government services and also provide new sources of high-quality institutional collateral in 24/7 markets."
Arjun Balaji said the evolution of continuous markets requires collateral that can operate continuously.
"24/7 markets require collateral that can move 24/7. USDM1 shows how sovereign debt can be issued natively onchain."
Leadership combines government, capital markets and digital asset expertise
M1X Global was founded by executives with backgrounds spanning public policy, institutional finance and blockchain infrastructure.
Chief Executive Officer Mark Lurie previously founded Shipyard Software, whose decentralized exchange technology was later acquired by Sushi Labs. President and COO Jordan Goldman was an early executive at Genesis Trading, where annual transaction volume grew from approximately $10 billion to more than $300 billion during his tenure. Robert Muller, President of Lomalo, contributes senior government leadership experience, including service as Chief Secretary and adviser to a presidential cabinet.
Institutional ecosystem continues to expand
The funding follows broader institutional availability of USDM1 through regulated financial platforms.
According to the company, institutional access is supported through Anchorage Digital's federally regulated bank, tZERO's SEC-registered broker-dealer custodian, and Surus, which serves as the U.S. trust company maintaining a first-priority security interest over the underlying Treasury collateral.
Earlier investors include Balaji Srinivasan and Tama Churchouse. Advisors include Peter Dittus and Michael Albanese.
Why it matters
The funding underscores a broader shift in blockchain adoption from privately issued digital assets toward sovereign financial infrastructure designed for regulated institutional markets.
Rather than replacing existing financial systems, M1X Global is building blockchain-based sovereign instruments that fit within established legal, regulatory and capital market frameworks. As governments and financial institutions explore continuous settlement and tokenized collateral, sovereign digital debt could emerge as an important component of next-generation market infrastructure.
