USDM1 is a sovereign-issued, US dollar-denominated, Treasury-backed financial instrument with onchain settlement.
USDM1 combines the form-factor of a digital asset with the legal and economic characteristics of fully collateralized sovereign debt, maintaining look-through to the credit of pledged US Treasury instruments.
In institutional derivatives, repo and financing workflows, it is designed to:
USDM1 is not a stablecoin, tokenized fund share, wrapped instrument or CBDC. It is a US dollar denominated sovereign exposure backed 1:1 by pledged US Treasury instruments.
Stablecoins are unsecured corporate payment instruments that sit outside legal netting sets and inflate gross exposures. USDM1 supports treatment as high-quality collateral for margin and financing with 24/7 settlement.
As a secured, USD-denominated sovereign bond with enforceable par redemption, USDM1 supports accounting treatment aligned with sovereign debt or unrestricted cash equivalents.
USDM1 is structured to support close-out netting under US legal frameworks and may reduce gross exposures when posted bilaterally as IM or VM under industry standard documentation.
USDM1 pays a sovereign coupon to holders. As yield-bearing sovereign collateral, it generates interest while posted or pledged under margin agreements.
USDM1 is suitable for use across regulated capital markets activities, improving operational efficiency and reducing settlement risk.
Post sovereign, Treasury-backed collateral in margin workflows with legal enforceability and netting compatibility. Reduce exposure and improve capital efficiency in institutional derivatives.
Upgrade corporate exposures to yield-bearing sovereign collateral designed for netting, substitution and reuse. Optimize capital efficiency without leaving qualified custody.
Deploy USDM1 in repo transactions as a natively issued, Treasury-collateralized sovereign instrument designed for title transfer repo, substitution and reuse in institutional frameworks.
Enable secured funding using sovereign collateral designed for balance sheet efficiency and institutional financing workflows.
Hold and move USD-denominated sovereign collateral with continuous yield accrual. Streamline treasury operations with institutional-grade safeguards and programmable, 24/7 transfer and settlement.
Settle transactions with a sovereign financial instrument. Move value, post margin and complete transactions in near real-time, reducing counterparty and settlement risk.
In the Republic of the Marshall Islands, USDM1 was developed as a modern disbursement channel for the world’s first nationwide universal basic income program, set to continue for the next 20 years.
USDM1 enables USD-denominated transfers with legal certainty and 24/7 settlement in one of the world’s most geographically dispersed island nations. The same characteristics enabling trusted benefit delivery also support use as dual-recourse sovereign collateral, expanding access to global capital markets.
USDM1 is supported by leading advisors, regulated intermediaries and global ecosystem partners.
USDM1 is designed for institutional due diligence and transparency requirements.
USDM1 is issued on blockchain networks against Treasury reserves held in segregated custody. Minting and burning correspond to issuance and redemption of sovereign bonds.
USDM1 is regulated and supervised by the Marshall Islands Monetary Authority. It adheres to rigorous oversight frameworks for anti-money laundering and sanctions compliance.
USDM1 meets international standards for cybersecurity, fraud and financial crime prevention, including 24/7 continuous threat monitoring and always-on incident response.
Learn more about USDM1 as a sovereign, Treasury-backed financial instrument in working groups with leading global financial institutions.
