Marshall Islands Reimagines Wealth Distribution: Universal Basic Income Program Goes Live on Blockchain

The Marshall Islands has just taken a bold step into the future, rolling out its groundbreaking national basic income initiative—the ENRA program—leveraging blockchain technology through Stellar. What makes this different from traditional welfare systems? The government is tapping into investment returns from the Compact Trust Fund (capped at 4%) to fund regular cash transfers to every citizen, no strings attached.

**How It Works: Multiple Pathways for Citizens**

When the first ENRA distributions hit on November 26, 2025, residents received payments through three channels: traditional checks, conventional bank transfers, or cutting-edge digital wallets. The Lomalo digital wallet, powered by Stellar's blockchain infrastructure, became the gateway for citizens wanting their funds on-chain. This multi-channel approach ensures inclusion, whether someone prefers analog or digital-native solutions.

**Why This Matters: A Universal Basic Income Program in Action**

Unlike means-tested welfare systems, the universal basic income program eliminates income thresholds and employment requirements entirely. Every resident citizen qualifies. The mechanism transforms the national wealth-sharing principle into a tangible monthly reality—regular, predictable, no bureaucratic gatekeeping. It's a full implementation of universal coverage, marking a significant pivot in how small nations think about resource distribution.

**The Digital Sovereign Bond Layer: USDM1**

Parallel to ENRA, the Stellar Foundation spearheaded development of USDM1, a tokenized national bond. This financial instrument maintains a 1:1 peg to short-term U.S. Treasury bonds, denominated in dollars, and remains redeemable at face value. It bridges traditional fixed-income markets with blockchain rails, creating a stablecoin-like asset with Treasury-grade backing.

The Marshall Islands experiment signals how blockchain infrastructure and thoughtful policy design can converge, creating novel solutions for sovereign wealth management and citizen financial inclusion.