The Republic of the Marshall Islands has made history by executing the world's first on-chain disbursement of universal basic income (UBI) on December 16, 2025. This groundbreaking initiative utilizes a digitally native sovereign bond on the Stellar blockchain, marking a significant step in the integration of blockchain technology into government financial systems. According to the assessment of specialists presented in the publication, this move could inspire other nations to explore similar financial innovations.
Introduction to the UBI Disbursement
The UBI disbursement is part of the ENRA program, which aims to provide financial support to citizens through innovative means. The government has issued USDM1, a US dollar-denominated digital bond that is fully backed by US Treasury bills, ensuring stability and trust in the system.
Benefits of the New Approach
This new approach allows for instant payments directly on-chain, enhancing transparency and accessibility for over 33,000 enrolled citizens. The initiative is particularly beneficial for residents of remote atolls, where traditional banking infrastructure is often lacking. Thus, it provides a vital lifeline to those in need.
The recent execution of the world's first on-chain disbursement of universal basic income in the Marshall Islands highlights the growing intersection of innovative financial solutions and technology. For insights on the challenges faced in integrating artificial intelligence and blockchain, see more.
