USDM1

A US dollar-denominated sovereign digital bond issued by the Republic of the Marshall Islands, explicitly not a stablecoin. Each unit redeems at par in dollars and is backed one-to-one by short-dated US Treasury instruments held in bankruptcy-remote custody, documented under New York law in the style of a fully collateralised Brady bond, classified as a UCC Article 8 investment security with a perfected first-priority security interest in the collateral and an explicit sovereign immunity waiver.

Issuance and redemption map to on-chain minting and burning, interest accrues in additional units at short-term Treasury yields less administrative cost and a government margin, and the first use case is national basic income: the Lomalo wallet delivers quarterly payments to outer-island residents, and in August 2026 Pacific Islands Forum finance ministers spent loaded wallets at a night market. More than 30 local merchants accept it, Anchorage Digital provides custody and settlement, and MoneyGram plus Bank of Guam open cash-out routes.