Building the Sovereign Layer of On-Chain Capital Markets

Real-world applications.
Institutional alignment.

M1X unlocks new applications of blockchain technology across public sector programs and institutional markets. We partner with governments to identify opportunities, coordinate expertise and support long-term economic development.

In the Republic of the Marshall Islands, M1X partnered with the government to help design and implement USDM1 - a sovereign, Treasury-backed financial instrument operating on blockchain rails, delivering quarterly Universal Basic Income disbursements across one of the world's most challenging geographies.

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Introducing USDM1

USDM1 is a sovereign, USD-denominated financial instrument issued natively on-chain, collateralized 1:1 by short-duration U.S. Treasuries.1 It combines the form-factor of a digital asset with the legal and economic characteristics of fully collateralized sovereign debt.

Explore USDM1
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Native issuance

USDM1 is issued directly on-chain by a sovereign. It is not a wrapped instrument.

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Full collateralization with Treasuries

Each unit of USDM1 is backed 1:1 by pledged short-duration U.S. Treasury instruments. Holders of USDM1 benefit from a perfected first-priority security interest in collateral under UCC, including UCC 8/9.2

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Institutional market compatibility

USDM1 is a Treasury-backed sovereign exposure structured in the style of a fully collateralized Brady bond under NY law, with an explicit waiver of sovereign immunity.

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Advised by Cleary Gottlieb

Cleary Gottlieb represented the Republic of the Marshall Islands in establishing and issuing USDM1, and advised on the structuring of the instrument under New York law.

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Financial instrument treatment

USDM1 is a secured, USD-denominated sovereign bond with enforceable par redemption, supporting accounting treatment aligned with sovereign debt or cash equivalents.

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Liquidity & yield

As a dual-recourse, Brady-style liquidity instrument, USDM1 pays a sovereign coupon while providing collateral look-through to the credit of pledged U.S. Treasuries.

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Nettable margin & collateral

USDM1 can be posted as collateral for derivatives, repo, and secured lending under industry-standard documentation, benefitting from robust U.S. close-out netting protections.

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Capital & balance sheet efficiency

USDM1 supports improved capital efficiency and more favorable balance sheet treatment relative to unsecured digital assets and corporate exposures.

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Collateral mobility & velocity

USDM1's native sovereign issuance enables near-instant transfer and 24/7 settlement between regulated counterparties and across global markets.

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Learn more about USDM1 in working groups with leading global financial institutions.

Enabling sovereign instruments to operate on digital rails

M1X's work focuses on building durable systems that expand access, reduce risk and promote long-term economic development.

We bring together world-class legal, operational and technological expertise, increasing domestic capacity while maintaining compatibility with global markets.

Our approach prioritizes modernization and efficiency improvements within clear legal and governance frameworks, bridging responsible innovation and regulatory alignment.

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Partner with M1X

M1X supports sovereign integration with programmable capital markets.

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USDM1

Learn more about USDM1 - a sovereign, USD-denominated, on-chain financial instrument fully collateralized by U.S. Treasury instruments.

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The content of this site is for informational purposes only and is not intended to market, offer, or solicit the purchase or sale of any financial product, including USDM1. USDM1 is a security issued by the Republic of the Marshall Islands and the Republic of the Marshall Islands has not registered any offering of USDM1 under the U.S. Securities Act, or any other U.S. federal and state securities laws. For complete terms, risk disclosures, and eligibility requirements, please visit the USDM1 website.

1) Small amounts of collateral may be kept as U.S. Government money market funds, stablecoins or other digital assets as a liquidity reserve to process redemption requests.
2) Subject only to liens from the entities holding the collateral