Marshall Islands launch blockchain-based UBI program

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Yaroslav Dmytrenko

14.02.2026

Marshall Islands launch blockchain-based UBI program — Tokenized bonds gain traction in public finance

Social benefits distributed under government programs could be administered via blockchain. Hong Kong, Thailand, and the Marshall Islands are already exploring the use of tokenized debt instruments and blockchain-based social assistance administration.

Digital payment delivery accelerates processes and can provide a traceable record for reserves and expenditures. As a result, a growing number of public sector institutions across various jurisdictions are considering this approach.

“Any benefits currently distributed through analog methods should be evaluated for digital delivery… however, the biggest regulatory risks for governments issuing blockchain-based bonds to the public are compliance and sanctions challenges,” said Julie Myers Wood, CEO of consulting firm Guidepost Solutions.

Guidepost Solutions advised the government of the Republic of the Marshall Islands on regulatory compliance and sanctions frameworks for USDM1 bonds — a tokenized debt instrument issued by the government and backed 1:1 by short-term U.S. Treasury bills.

The government of the Marshall Islands launched a universal basic income (UBI) program in November 2025, distributing quarterly payments directly to citizens via a mobile wallet.

According to Wood, in an interview with Cointelegraph, anti-money laundering (AML) requirements and sanctions compliance are two core principles that must be upheld in such projects. In other words, governments issuing tokenized bonds must also implement know-your-customer (KYC) procedures to ensure funds are directed to legitimate recipients.

A New future for social payments and public debt

Several governments and administrations, including Thailand and Hong Kong, are currently studying the use of tokenized debt instruments and blockchain-based social assistance programs to eliminate settlement delays and costly transaction fees inherent in traditional finance, while also aiming to remove intermediaries from issuance and clearing processes.

Shorter settlement times, lower transaction costs, and asset fractionalization — enabling individuals to purchase portions of financial assets — expand investor access to the global financial system, said Lamine Brahimi, co-founder of Taurus SA, a digital asset infrastructure provider for enterprises.

According to data from crypto analytics platform Token Terminal, the market for tokenized U.S. Treasuries has grown more than 50-fold since 2024. Brahimi forecasts that the tokenized bond market could expand to $300 billion.

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