Marshall Islands Launches National UBI Program with Optional Crypto Payments

Highlights:

• The Marshall Islands has launched a national UBI program to reach citizens on remote islands.
• The quarterly payments aim to ease living costs and support households during market pressure.
• Most citizens chose banks or checks, while early crypto wallet adoption remains limited in the initial cycle.

The Marshall Islands has launched a national UBI program that allows cryptocurrency payments for eligible citizens. The government has started quarterly payments for residents across the country. Each eligible citizen now receives about $200 every three months, and the total annual payment reaches nearly $800 per person. Officials said the program aims to ease rising living costs.

🚨 JUST IN: 💰🔥The Marshall Islands becomes the first country to distribute Universal Basic Income (UBI) on-chain, powered by USDM1 sovereign bonds on Stellar.
A major milestone for blockchain-backed public finance. 🌍🚀#Crypto #Blockchain #RWA #Web3 #FinTech #OnChainFinance pic.twitter.com/9FfJ7QvSZi

— CryptoSeaway (@cryptoseaway) December 17, 2025

The first round of payments reached citizens in late November. Recipients chose how they wanted to receive their funds. Available options included bank deposits, paper checks, and a government-backed digital wallet. Officials confirmed that each method provides the same payment value. Citizens selected options based on access and convenience.

The Finance Minister, David Paul, said the program prioritizes inclusion across all communities. He stated that the payments do not replace wages or employment income. Instead, the funds provide financial support during economic pressure. The payments also serve as a basic social safety net. Officials said the initiative aims to support household stability.

Geographic conditions shaped the payment design. The Marshall Islands is a Pacific nation with a population of about 42,000 people. Many residents live across widely dispersed atolls. Several communities lack reliable banking access. As a result, the government introduced flexible payment methods.

Marshall Islands Launches Blockchain Rail to Reach Dispersed Communities

The government added a blockchain-based payment option to address delivery challenges. The digital wallet allows direct transfers to citizens. Officials said this method improves payment speed and also reduces dependence on physical delivery. The system supports efficient transfers across long distances.

The cryptocurrency payments use a U.S. dollar-pegged stablecoin. Officials selected this structure to maintain price stability. The model avoids exposure to market volatility and also allows clear tracking of transactions. The payments operate on the Stellar blockchain. The government partnered with the Stellar Development Foundation and Crossmint. Crossmint developed the Lomalo digital wallet used by recipients. The wallet allows instant receipt of funds. Citizens can access payments without visiting bank branches.

HISTORIC NEWS 🇲🇭

We’re helping tokenize a nation.

The Marshall Islands is launching blockchain-based UBI, giving citizens dollar-denominated tokens they can receive, store, and send peer-to-peer from their phones.

Powered by Crossmint Wallets pic.twitter.com/lvAWjTI6SW

— Crossmint (@crossmint) December 16, 2025

Officials stressed that the program does not introduce a new national currency. They defined it as a fiscal system of distribution in which every unit of payment is fully supported by U.S. Treasury securities of short-term maturities. Independent trustees possess collateral beyond government ownership and redemption rights, and issues are governed by legal provisions.

Early Adoption of National UBI Program Shows Cautious Digital Uptake

The UBI program is funded using a long-standing trust arrangement. The trust is based on a settlement with the United States. The agreement compensates the Marshall Islands for past nuclear testing. The fund holds more than $1.3 billion in assets. The United States plans to add about $500 million through 2027. Officials said the funding structure ensures long-term payment stability. The trust supports predictable quarterly distributions and also protects the program from budget pressure.

Dr. Huy Pham of RMIT University described the initiative as a global first. He highlighted the nationwide scale of the UBI rollout. He also noted the rare use of blockchain technology at the country level. The government said it will monitor usage trends closely. Authorities plan to adjust outreach efforts when necessary. Reliable payment delivery remains the top priority. Inclusion across all islands continues to guide the program.