Marshall Islands Launches World's First Blockchain-Based Universal Basic Income on Stellar Blockchain
On December 16, 2025, the Marshall Islands launched the world's first on-chain universal basic income (UBI) disbursement using a digitally native sovereign bond, USDM1, on the Stellar blockchain as part of the ENRA fiscal program.
USDM1 is a U.S. dollar-denominated bond fully backed by short-term U.S. Treasury bills, with collateral held by an independent trustee and featuring fixed, legally enforceable redemption rights. The bond is issued under New York law using a Brady-bond structure, emphasizing settled law over regulatory discretion.
The UBI funds are distributed digitally through the Lomalo wallet app, built by Crossmint, via the Stellar Disbursement Platform to eligible citizens across the dispersed islands. This program replaces the previous quarterly physical cash deliveries with direct digital transfers to improve efficiency and access in the Marshall Islands.
ENRA is designed as a fiscal distribution program rather than a currency initiative, aiming to preserve the Marshall Islands' monetary and technological sovereignty. The initiative was developed in partnership with the Stellar Development Foundation (SDF) and Crossmint, with a white paper outlining the broader policy and financial framework.
Denelle Dixon, CEO of SDF, described the program as a practical example of how blockchain adoption can enable financial inclusion where access was previously limited. The rollout considers geographic and infrastructure constraints and represents a multimillion-dollar program.
