The Marshall Islands has launched the world's first blockchain-based universal basic income (UBI) program using the Stellar blockchain. The initiative, called ENRA, disburses USDM1—a U.S. dollar-denominated sovereign bond fully backed by U.S. Treasuries—via digital wallets to citizens across dispersed islands. This replaces physical cash deliveries with instant on-chain transfers.
The Republic of the Marshall Islands (RMI) completed the first on-chain UBI disbursement using a digitally native sovereign bond, USDM1, on the Stellar blockchain, in partnership with the Stellar Development Foundation (SDF) and Crossmint. Part of the national ENRA program, it replaces quarterly physical cash deliveries with direct digital transfers through the custom Lomalo wallet app on Stellar. USDM1 is fully backed by short-term U.S. Treasury bills held by an independent trustee, issued under New York law with a Brady-bond structure ensuring legal enforceability. SDF CEO Denelle Dixon highlighted it as a prime example of blockchain adoption for financial access in underserved areas. The program addresses RMI's geographical challenges without affecting monetary sovereignty, as confirmed by the Finance Ministry.
