The Republic of the Marshall Islands is launching blockchain-based wallets via the Lomalo app to deliver its nationwide ENRA Universal Basic Income program. Funds are disbursed as USDM1, a USD-pegged digital sovereign bond issued on the Stellar network and backed by U.S. Treasuries. This enables fast, low-cost transfers to remote citizens, overcoming traditional banking limitations.
The Marshall Islands is modernizing its economy with ENRA, the world's first onchain Universal Basic Income program, using blockchain wallets for quarterly disbursements to citizens, including those in remote atolls. The Lomalo app, powered by Crossmint wallets, allows users to receive, store, and transfer USDM1 tokens—USD-denominated digital sovereign bonds issued on Stellar and backed 1:1 by U.S. Treasuries. This solution addresses challenges like physical currency shortages, long travel to banks, and unreliable logistics across 1,200 islands. Stellar's Disbursement Platform ensures fast, low-cost, reliable transfers even on low-bandwidth connections. Crossmint provides user-friendly wallets without seed phrases, enabling quick rollout and mainstream adoption. The system promotes financial inclusion, reduces reliance on IOUs, and sets a model for digital benefits globally, with Treasury interest shared between citizens and government.
