Marshall Islands Launches World’s First Blockchain UBI Program on Stellar Network

TLDR:

• Marshall Islands completes first nationwide blockchain-powered UBI distribution using the Stellar network.
• USDM1 digital sovereign bond replaces weeks-long cash deliveries with instant digital wallet payments.
• Lomalo app powered by Crossmint, enables remote citizens to access funds in seconds, not weeks or months.
• Stellar Development Foundation grant funds a financial inclusion strategy across an island nation.

The Republic of the Marshall Islands has completed the world’s first onchain disbursement of universal basic income through the Stellar blockchain network. 

The Stellar Development Foundation facilitated this groundbreaking program by issuing a multimillion-dollar grant for USDM1 development. 

This digital sovereign bond enables quarterly direct disbursements to eligible Marshallese citizens through the ENRA program. 

The initiative addresses the geographic challenges of delivering financial services to remote island communities.

Digital Infrastructure Transforms Financial Access

The ENRA program launched in November 2025 and represents a fundamental shift in social benefit distribution. Traditional methods required periodic cash deliveries via official transport vessels to reach distant island populations. 

These outdated systems created substantial delays and inefficiencies for citizens awaiting essential funds.

The new system eliminates these barriers through immediate digital access. Eligible recipients now receive funds instantly through Lomalo, a custom-built application powered by Crossmint wallets. The Stellar Disbursement Platform distributes USDM1 directly into users’ digital wallets.

This transformation proves particularly valuable for underserved communities lacking access to correspondent banking systems. 

Remote families previously had to wait weeks for paper checks or cash shipments to arrive. The digital solution delivers payments in seconds regardless of physical location.

Crossmint co-founder Rodri Fernandez Touza emphasized the practical benefits for remote communities. “For families in remote communities who previously waited weeks for paper checks or cash shipments, this changes everything,” he said. 

He added that citizens can now receive payments in seconds with Lomalo and USDM1. The system provides a blueprint for modernizing financial infrastructure through stablecoin technology.

Sovereign Bond Strengthens National Financial Strategy

USDM1 operates as a fully collateralized digital sovereign bond issued by the Marshall Islands government. 

The bond integrates seamlessly with the nation’s existing domestic financial system while offering enhanced capabilities. This compatibility ensures smooth adoption without disrupting established financial relationships.

The Stellar Development Foundation selected the Marshall Islands based on proven expertise in emerging markets. 

Minister of Finance David Paul acknowledged SDF’s critical role in the project’s success. “Delivering USDM1 at a standard worthy of the Marshallese people required the right partners by our side,” he stated. 

Paul noted that SDF’s work with the United Nations demonstrated essential qualifications for financial access expansion.

According to a post from Stellar’s official account, CEO Denelle Dixon described the program’s broader meaning. “Delivering the first blockchain-powered instance of nationwide Universal Basic Income is what the Stellar network was built to power,” Dixon explained. 

She characterized the program as demonstrating genuine adoption of blockchain technology in everyday activities.

The government released a comprehensive seven-part white paper alongside the announcement. 

This document details the nation’s financial inclusion strategy and digital infrastructure modernization plans. 

The partnership between SDF and Crossmint brings together complementary expertise in blockchain infrastructure and wallet technology.