M1X Global, the company behind the Republic of the Marshall Islands‘ universal basic income program, has announced its launch following a $3 million angel investment round. The funding was raised from current and former executives connected to the crypto and financial services industries. The announcement was shared exclusively with Cointelegraph on Tuesday.
The capital will be directed toward developing and expanding adoption of the USDM1 digital sovereign bond, a US dollar-pegged instrument that enables Marshall Islands citizens to access the country’s UBI program. The coin was first introduced on the Stellar blockchain in December. M1X Global now says it plans to broaden USDM1’s use cases into institutional markets.
According to M1X co-founder and COO Jordan Goldman, widening access to the coin will allow it to function as high-quality collateral in broader financial contexts. The move reflects a growing trend among nations exploring digital financial instruments. Similar initiatives include the Bahamas launching the first central bank digital currency in 2021 and Palau backing blockchain savings bonds in 2024. Earlier this month, the Bank of Canada also reported the successful issuance of the country’s first tokenized bond through a pilot program.
Notable backers in the angel round include former Coinbase chief technology officer Balaji Srinivasan and Cumberland Labs CEO Tama Churchouse. Their involvement signals meaningful interest from established figures in the cryptocurrency sector. The participation of such prominent names lends the project additional credibility as it seeks to scale its operations.
Despite the momentum, the launch has not been without scrutiny. The International Monetary Fund warned the Marshall Islands government against proceeding with the digital sovereign bond, citing a lack of prerequisite capacity to effectively manage associated risks. The IMF also stated that USDM1’s potential to improve financial inclusion was limited in the near term due to insufficient digital infrastructure in the country.
In a December report, the IMF stated that the risks of a global USDM1 launch appeared disproportionately higher than the anticipated benefits and could not be adequately mitigated. The organization’s concerns centered on the country’s readiness to handle the complexities of a broad digital asset rollout. These warnings were issued before the coin’s December debut on the Stellar network.
A representative of the Marshall Islands government told Cointelegraph in November that officials were in active dialogue with the IMF over the UBI program and that USDM1 was intentionally modeled on the Brady-style framework that the IMF has historically supported. Following the M1X Global launch announcement, a government spokesperson indicated that the IMF’s earlier warning reflected the fact that USDM1 was untested at the time it was issued. The government appears to view the subsequent launch and investor backing as steps toward addressing those concerns.
Originally reported by CoinTelegraph.
