Marshall Islands Launches World’s First Blockchain-Based UBI on Stellar
Historic Launch: Marshall Islands Pioneers On-Chain UBI with Stellar
The Republic of the Marshall Islands (RMI) has made history by launching the world’s first blockchain-based universal basic income (UBI) program on the Stellar ($XLM) network. Completed on December 16, 2025, this initiative uses a digitally native sovereign bond called USDM1 to deliver quarterly payments directly to eligible citizens. For beginners, UBI is regular cash given to everyone to cover basics, no strings attached. Here, it’s digitized on Stellar for instant, low-cost distribution across the nation’s 1,200 scattered islands. The program, locally called ENRA, replaces boat-delivered physical cash with app-based transfers via Lomalo, a custom wallet built by Crossmint. As Denelle Dixon, Stellar Development Foundation CEO, said, “This exemplifies what adoption looks like for blockchain technology.” It’s not just aid, it’s efficient, transparent inclusion.
How It Works: USDM1 Bond and Stellar’s Magic
Moreover, USDM1 is a U.S. dollar-denominated bond fully backed by short-term U.S. Treasury bills. Held by an independent trustee under New York law, it’s issued 1:1 against Treasuries, no inflation risk, no government control over collateral. Distributed via Stellar’s Disbursement Platform into Lomalo wallets, funds arrive instantly. Recipients access them digitally or cash out locally. Specifically, this multimillion-dollar program targets dispersed atolls with limited banking. No more delays or lost cash in transit. As the Finance Ministry spokesperson explained, “Distance, dispersion, and limited infrastructure shape daily life – this was purpose-built for the Marshall Islands.” Additionally, it’s a fiscal tool, not a new currency. Redemption rights are fixed and enforceable.
The Impact: Faster Aid, Transparency, and Inclusion for Remote Islands
Furthermore, this rollout transforms humanitarian aid. Traditional methods cost time and money, boats, checks, high fees. Stellar fixes that: 5-second settlements, near-zero costs, full traceability. For 42,000 residents, it’s reliable support for rent, food, and essentials amid rising costs. UNHCR-inspired, it builds on Stellar’s Ukraine pilots ($4.6M to 2,500 families). As Dixon noted, it enables “everyday financial access where it was previously lacking.” In remote regions, digital wallets empower the unbanked. Education components help transition from cash. As a result, it’s inclusive: Opt for digital, check, or deposit. Early uptake? Growing, with simplicity key for varying digital literacy.
Stellar’s Role: The Perfect Blockchain for Sovereign Aid
Additionally, Stellar shines here. Its network handles high volumes with eco-friendly consensus. No energy waste like Bitcoin. Partnerships with SDF and Crossmint ensure scale. As the white paper outlines, this blends sovereign debt (Brady-bond structure) with blockchain. Treasuries stay segregated. No sovereignty loss. For $XLM holders, it’s utility proof: More aid flows mean network demand. XLM held steady at $0.32 post-launch. As global RWAs hit $24B, Stellar’s $639M share grows. Hence, this isn’t experiment, it’s operational public finance.
The Future: Blockchain Aid Goes Mainstream
In short, Marshall Islands’ on-chain UBI sets a benchmark. Sovereign bonds meet Stellar for transparent welfare. Millions could follow in underserved regions. For $XLM, it’s adoption fuel. Platforms like Lumexo trade it easily. As 2025 ends, blockchain isn’t future, it’s delivering today.