Universal Basic Income distributed on the Marshall Islands chain, Stellar blockchain supports the first sovereign bond UBI experiment

【Chain Wen】The Marshall Islands did something interesting — they used the Stellar blockchain to complete the world’s first on-chain Universal Basic Income (UBI) distribution project.

The core of the project is a digital sovereign bond, USDM1, fully backed by short-term US Treasuries. This scheme was jointly developed by the Marshall Islands government, the Stellar Development Foundation, and infrastructure provider Crossmint, at a cost of several million dollars. Previously, cash was distributed quarterly; now, it is transferred digitally directly into citizens’ custom wallet app Lomalo.

From a design perspective, USDM1 is pegged 1:1 to trust short-term US Treasuries, with full backing throughout. The treasury collateral is held by an independent trustee, with fixed, unconditional redemption rights that are legally enforceable. This structure ensures the security and enforceability of the bonds.

The Marshall Islands Ministry of Finance emphasized that USDM1 is issued under New York law, based on an established legal framework rather than regulatory discretion. The project does not involve any damage to the country’s monetary or technological sovereignty. This UBI plan (codenamed ENRA) is a national-level financial distribution innovation, accompanied by a detailed policy and financial framework white paper.

This case reflects a sovereign country’s exploration of on-chain finance — using blockchain technology to improve welfare distribution efficiency, while ensuring financial security through stablecoins and bond mechanisms.