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  • Over 40,000 residents now access $200 every three months via a simple digital wallet, cutting out old-school cash deliveries.
  • Using the Stellar network, citizens receive quarterly payments in a stable digital bond called USDM1, backed by U.S. Treasuries for security.

Using the Stellar blockchain, the Republic of the Marshall Islands (RMI) has made the first on-chain payment of universal basic income (UBI) in the world. They used a digitally native sovereign bond called USDM1.

The Marshalls Islands’ Finance Ministry acknowledged that the multimillion-dollar project was developed in collaboration with the Stellar Development Foundation (SDF) and infrastructure provider Crossmint. It is part of RMI’s national UBI program, which is known locally as ENRA. The program replaces sending cash to qualifying people every three months with direct digital transfers. Many of these citizens live on islands that are far apart.

USDM1 is a sovereign bond that is backed by short-term U.S. Treasury bills and is denominated in U.S. dollars. The Stellar Disbursement Platform sends the bond to a custom-built digital wallet software named Lomalo. Crossmint made Lomalo, which lets people get money right away through Crossmint wallets on the Stellar network.


Stellar’s Disbursement Platform sends money to an easy-to-use app named Lomalo. Crossmint made this wallet so that users can get, save, and spend their UBI without having to go to a bank. It’s made for life on the islands, where regular banking isn’t very reliable.

Denelle Dixon, CEO of the Stellar Development Foundation, called it a prime example of “what adoption looks like for blockchain technology.” It opens doors to financial access where it was once impossible, potentially reducing poverty and boosting local economies. For residents, it’s not just money it’s empowerment in a digital age.

According to Coindesk’s report, the spokesperson for the Ministry of Finance said the following:

“USDM1 is issued under New York law using a time-tested Brady-bond structure that has underpinned sovereign finance for decades. Its foundation is not regulatory discretion or policy preference, but settled law.”

Although it is a technological revolution, the IMF (International Monetary Fund) warned the Marshall Islands in recent months. According to the IMF report, the early implementation of such digital assets and the UBI program could create risks in the country’s macroeconomic balances.

Legal Notice: This news is written for informational purposes only and should not be considered investment advice.

Last Edited: 12/19/2025