San Francisco, Dec 15 — The Republic of the Marshall Islands (RMI) has completed the world’s first on-chain disbursement of a nationwide universal basic income (UBI), using a digital sovereign bond issued and distributed over the Stellar network.
The program uses USDM1, a U.S. dollar-denominated sovereign bond fully collateralized by short-dated U.S. Treasury bills. The bond is being distributed as part of ENRA, the Marshall Islands’ UBI initiative launched in November 2025, which provides quarterly payments to eligible citizens.
The Stellar Development Foundation (SDF) said it facilitated the on-chain distribution and provided a multimillion-dollar grant to support the development of USDM1. The initiative is designed to address logistical challenges in a geographically dispersed island nation, where access to traditional banking and cash distribution can be limited.
Under the new system, recipients receive funds digitally through Lomalo, a mobile application built for the Marshall Islands and powered by Crossmint wallet infrastructure on the Stellar network. USDM1 is distributed via the Stellar Disbursement Platform directly to recipients’ wallets, replacing earlier methods that relied on physical cash deliveries transported by government vessels.
Denelle Dixon, chief executive and executive director of SDF, said the project demonstrates a practical use of blockchain technology for public services, enabling direct and rapid payments to individuals who have historically faced barriers to financial access.
RMI Finance Minister David Paul said the government selected partners with experience in financial inclusion initiatives to ensure the system met national standards and could integrate with existing domestic financial infrastructure.
Crossmint co-founder Rodri Fernandez Touza said the shift to digital delivery significantly reduces delays for residents in remote communities, allowing payments to be received almost immediately rather than weeks after issuance.
According to the RMI government, USDM1 is intended to support financial inclusion while maintaining compatibility with the country’s existing financial system. The announcement coincides with the release of a seven-part white paper outlining the Marshall Islands’ broader strategy for financial inclusion, digital infrastructure modernization, and the policy framework underpinning the digital bond.
