MAJURO, Marshall Islands, June 22, 2026 — Today, the Republic of the Marshall Islands (RMI) Ministry of Finance, Banking and Postal Services announced a collaboration with Bank of Guam, the FDIC-insured banking institution serving the U.S.-associated Pacific Island jurisdictions, to now accept USDM1 for deposits and withdrawals and integrate with the Lomalo digital wallet for its deposit account holders. The announcement was made at the Forum Economic Ministers Meeting (FEMM) convened in Majuro on June 22, 2026, which brings together finance ministers from the 18 member countries of the Pacific Islands Forum. This represents a significant step in the Republic's ongoing effort to modernize access to financial services for its citizens and businesses.
USDM1: A Sovereign Digital Bond Backed by U.S. Treasuries
USDM1 is a U.S. dollar-denominated sovereign debt instrument issued by the Government of the RMI on public blockchain infrastructure. It is fully collateralized (1:1) by short-duration U.S. Treasury instruments held in bankruptcy remote custody by a U.S. Trust Company, structured under New York law, and designed to provide holders with a perfected first-priority security interest in the collateral, qualifying for HQLA treatment under Basel standards. M1X Global, a financial infrastructure and technology company, serves as coordinating agent in a public-private partnership with the RMI.
The RMI operates exclusively on the U.S. dollar standard under its Compact of Free Association (COFA) with the United States, which establishes the dollar as its sole legal tender. The geography of the Marshall Islands — a nation of more than one thousand islands and atolls spread across nearly two million square kilometers of ocean — has long posed challenges for citizens. Shortages of physical currency occur periodically, and citizens on outer islands often travel significant distances to access banking services. USDM1 facilitates efficient, secure government disbursements and aid delivery with 24/7 settlement to any citizen with a digital wallet, regardless of location in the RMI. Cleary Gottlieb serves as issuer's counsel and advised on the structuring of the instrument under New York law.
Bank Integration Bridges Digital and Traditional Finance
Through this integration, existing customers of Bank of Guam will have the ability to transfer between their Lomalo wallet and bank accounts. USDM1 has already supported the world's first nationwide Universal Basic Income program as a disbursement rail in the RMI, enabling instant disbursements to citizens via Lomalo across one of the world's most geographically dispersed island nations.
David W. Paul, Minister of Finance, Banking and Postal Services, said: "The participation of Bank of Guam in accepting USDM1 is an important milestone for the Republic. For decades, the geography of the Marshall Islands has meant that access to banking services has been uneven across our nation. USDM1 was designed to address that reality. With Bank of Guam's acceptance of USDM1 for deposits and withdrawals, Marshallese citizens and businesses gain access to a more flexible and resilient financial system, anchored in the full faith and credit of the Republic and secured by U.S. Treasury collateral."
Hilda C. Heine, President of the Republic of the Marshall Islands, said: "Financial inclusion is foundational to the economic future of the Marshall Islands. The integration of USDM1 with a United States-regulated commercial bank demonstrates that our citizens, wherever they live across our atolls, can participate fully in a modern financial system. The Government of the Marshall Islands is proud to see this infrastructure put to work in service of our people, and truly appreciates the Bank of Guam's partnership in this game-changing development."
Statements from Bank of Guam and M1X Global
Joaquin P.L.G. Cook, President and Chief Executive Officer of Bank of Guam, said: "For more than fifty years, Bank of Guam has been the People's Bank, serving the communities of the U.S.-associated Pacific Islands. The Republic of the Marshall Islands has taken a leap in building USDM1, offering convenience and mobility for those who do not have access to physical branches, and we are proud to extend our services to support it. Integrating via the Lomalo wallet and using the ACH rails for deposits and withdrawals allows us to deliver reliable U.S. dollar banking to Marshallese citizens and businesses wherever they live, and underscores our continuing commitment to providing the best and most convenient financial services to the communities we serve across the region."
Mark Lurie, Co-Founder and Chief Executive Officer of M1X Global, said: "USDM1 was designed to meet the standards of regulated financial institutions while serving the everyday needs of citizens. Bank of Guam's integration demonstrates that historical frictions limiting financial access and the utility of digital financial instruments is disappearing. USDM1 is structured to be suitable to be held by banks as HQLA and to be disbursed directly to citizens' digital wallets where financial infrastructure is limited. It does not require conversion to move between the banking system and digital wallets — it operates natively in both. We are proud to support the Republic of the Marshall Islands in this work."
The Government of the Marshall Islands remains committed to strengthening the financial infrastructure available to its citizens and to advancing the Republic's standing as a responsible participant in the international financial system.