Updated
Updated · Markets Media · Jul 20
BitGo Adds Custody for Marshall Islands' USDM1 Bond, Enabling 24/7 T+0 Settlement
Updated
Updated · Markets Media · Jul 20

BitGo Adds Custody for Marshall Islands' USDM1 Bond, Enabling 24/7 T+0 Settlement

1 articles · Updated · Markets Media · Jul 20

Summary

  • BitGo Bank & Trust said institutional clients can now hold USDM1 in qualified, segregated custody and use it for off-exchange settlement through its Go Network.
  • USDM1 is a dollar-denominated Marshall Islands sovereign bond backed 1:1 by U.S. Treasuries, issued natively onchain and designed to accrue value daily.
  • BitGo said the setup lets eligible users deploy the bond across connected venues on Stellar, Ethereum and Solana with 24/7 T+0 settlement, without moving assets on-exchange.
  • That model is aimed at cutting intraday exposure, settlement risk and pre-funding needs while improving capital efficiency for institutional trading and financing.
  • The Marshall Islands has already used USDM1 in a 20-year nationwide universal basic income program spanning more than 1,200 islands, while financial institutions also use it as a treasury instrument.

Insights

Could USDM1's onchain structure and real-time oversight set a new global standard for sovereign debt and digital UBI delivery?
Will major regulators and banks treat USDM1 as equivalent to traditional US Treasuries for liquidity and collateral requirements?
What challenges or unintended consequences might arise from using blockchain-native sovereign bonds for UBI in remote island nations?