The Republic of the Marshall Islands (RMI) announced a strategic partnership with Inca Digital, a leader in blockchain market intelligence and risk analytics, to enhance real-time market surveillance and compliance monitoring for USDM1, the world’s first digitally native, fully collateralized sovereign bond.
USDM1 serves as a disbursement rail for the RMI’s nationwide universal basic income program, known locally as ENRA. It is also designed to support regulated institutional use in derivatives and repo markets as dual-recourse sovereign collateral across trading and financing workflows.
Under the partnership, Inca Digital – recognized for its expertise in real-time risk monitoring and digital asset intelligence – provides an integrated oversight framework for USDM1, including real-time surveillance, transaction monitoring, anomaly detection, cybersecurity support, and rapid incident response. These capabilities are designed to strengthen AML/CFT compliance, detect and deter market manipulation, and enhance the operational resilience and security of USDM1.
USDM1 is a U.S. dollar-denominated sovereign bond, collateralized 1:1 by short-dated U.S. Treasury instruments and issued natively by the sovereign on the blockchain. It combines the legal safeguards of traditional government securities with the efficiencies and transparency of 24/7 blockchain settlement.
Through ENRA, Marshallese citizens can choose to receive quarterly UBI disbursements in USDM1 directly into a mobile wallet, reducing reliance on physical cash deliveries and cheques across a geographically dispersed nation with limited traditional banking infrastructure. The program marks a modernization of sovereign digital finance and a defining advance in citizen-centered benefit distribution.
Adam Zarazinski, CEO of Inca Digital, said: “We built Inca Digital to bring real oversight to markets that matter. The RMI issuing sovereign debt on-chain and routing it directly to citizens – that matters. There’s no higher-stakes application for what we do.”
Hon. David Paul, Minister of Finance, Republic of the Marshall Islands, said: “This partnership enhances USDM1 with real-time market oversight and sharper risk detection, making our systems more resilient and responsive. It reinforces our ability to identify unusual activity while strengthening transparency and security. At the domestic level, Inca Digital’s involvement strengthens operational resilience, helping build stronger infrastructure while delivering practical benefits for citizens. The same systems also enhance and protect regulated, compliant institutional use.”