The Marshall Islands is advancing its universal basic income (UBI) program through a blockchain-based financial instrument, the USDM1 digital sovereign bond, drawing support from high-profile figures in the crypto industry. The initiative aims to distribute UBI to citizens while expanding access to institutional markets.
M1X Global, the company managing the program, announced a $3 million angel investment round led by former Coinbase CTO Balaji Srinivasan and Cumberland Labs CEO Tama Churchouse. The funds will drive development and adoption of USDM1, launched on the Stellar blockchain in December.
M1X co-founder Jordan Goldman stated the goal is to position USDM1 as high-quality collateral in global finance. The Marshall Islands government said the digital bond mirrors the IMF-supported Brady framework and emphasized it is actively engaging with the IMF.
The IMF has cautioned against the rollout, citing inadequate digital infrastructure, cybersecurity risks, and potential fiscal instability from redemption pressures. It argued near-term financial inclusion benefits are limited and risks outweigh gains.
Despite concerns, the Marshall Islands remains committed, positioning USDM1 as part of a broader trend in sovereign tokenization, joining nations like the Bahamas and Canada in exploring digital asset innovation.