The Pacific archipelago known as the Marshall Islands is making big news in the world arena – not because of its beautiful atolls or geographical significance but due to its innovative take on public finances. Towards the end of 2025, the government initiated an innovative take on social security in the form of the world’s first blockchain-based Universal Basic Income scheme, providing its people with financial assistance in cash form, including, as an additional choice, digital money.It’s not a hype project or a pilot project. Rather, it’s an operational safety net program in the country known as the ENRA system, which makes use of sovereign funds via the digital wallet on the Stellar blockchain platform. The payment of this service also involves USDM1, the dollar-pegged sovereign digital bonds, which are accessible via the Lomalo wallet app offered by the government itself.While several countries remain on the fence about central bank digital currencies or digital welfare infrastructure, the Marshall Islands is already providing cash on a blockchain. In fact, for the residents, this is both a novelty and an inevitability.While universal basic income is a theoretical concept and a topic of debate among economists and politicians, and while countries are only starting to consider it, the Marshall Islands are already using such a system.Under this initiative, all eligible citizens start to get around US$200 every quarter, or approximately US$800 annually, with the aim of compensating for the rising cost of living and bolstering the safety net. Assistees have the option to collect the money either traditionally, for example, by bank transfer and cheque, or access the same amount of cash via an electronic wallet facilitated by blockchain technology.Also important is the optional crypto-enabled payout. This is evidence of the desire to straddle financial hurdles in a country which stretches across almost 30 coral atolls, some of which have no banking infrastructure. Blockchain enables quick one-off transactions even in rural areas where digital banking is scanty.However, the essence of the Marshall Islands’ project is USDM1, the sovereign digital bond that is fully collateralized by US Treasury Bills with maturities of no more than six months. This is not some hot new cryptocurrency that may fluctuate from day to day. This is an enforceable public asset, secured in trust and backed by the US dollar under the jurisdiction of the law of the State of New York.The government uses Stellar’s blockchain infrastructure to distribute USDM1 funds, taking advantage of its low costs and fast settlement times. Citizens who choose to participate have funds deposited directly into their Lomalo wallet, which has been developed by blockchain collaborators.