Marshall Islands launches first blockchain UBI on Stellar with USDM1
The Marshall Islands has debuted what it calls the first national blockchain UBI, issuing the USDM1 digital sovereign bond on the Stellar network to enable instant quarterly distributions to citizens through the government-backed Lomalo wallet. By leveraging Stellar’s low-fee, fast settlement rails and the XLM ecosystem, authorities say the program simplifies delivery of recurring public payments and ties funding directly to a programmable digital instrument.
This move could set a precedent for sovereign programmable payments and financial inclusion, offering an on-chain model for other countries exploring digital bonds or cash-transfer programs. Observers say the rollout highlights benefits—speed, transparency and traceability—but also raises questions about privacy, reserve backing, and regulatory oversight. Still, the positive reception from proponents suggests the USDM1-Lomalo pairing may become a case study for national digital finance initiatives.