In a groundbreaking move, the Marshall Islands has officially launched a universal basic income (UBI) program, setting a global example in combining social welfare and blockchain technology. The program will distribute funds through a new digital wallet called Lomalo, which uses the USDM1 stablecoin, a cryptocurrency pegged to the US dollar.
By choosing a blockchain-based approach, the Marshall Islands aims to ensure more efficient and transparent financial aid distribution. The Lomalo wallet, available to citizens, simplifies access to funds and encourages broader participation in the digital economy.
This marks one of the world’s first real-world deployments of a national UBI using digital currency—ushering in a fresh chapter for both financial inclusion and government aid delivery.
How Lomalo and USDM1 Work Together
The Lomalo wallet is designed to be user-friendly and accessible, allowing citizens to receive their UBI directly and instantly. It leverages the USDM1 stablecoin, which maintains its value by being pegged 1:1 to the US dollar. This ensures stability for users, especially important in regions where traditional banking infrastructure is limited.
The use of a stablecoin like USDM1 also reduces transaction fees and speeds up payment processes. It provides a transparent trail of where funds go, reducing the chances of mismanagement.
In short, the system ensures that every eligible citizen gets what they’re promised—securely, quickly, and fairly.
UPDATE: Marshall Islands has launched a universal basic income program using a new digital wallet, Lomalo, powered by the US dollar-pegged stablecoin USDM1. pic.twitter.com/yLJnpbK3Np
— Cointelegraph (@Cointelegraph) November 19, 2025
A Model for Financial Inclusion
The Marshall Islands UBI initiative highlights how smaller nations can lead in tech-driven public policy. With Lomalo and USDM1, the government is not only supporting its citizens financially but also introducing them to digital finance tools that could benefit them in the long run.
This effort reflects a growing trend of countries exploring blockchain for more than just speculative investments—using it instead as a practical tool for governance and welfare.
As the world watches, the Marshall Islands could serve as a model for how digital innovation can improve lives in meaningful, everyday ways.