BitGo Custody for Onchain Sovereign Bond USDM1 Goes Live

BitGo’s role covers custody and settlement infrastructure. Institutional clients can hold USDM1 in segregated, regulated cold storage with offline key management. BitGo enables T+0 off-exchange settlement around the clock. Traditional sovereign bond markets settle on a T+1 or T+2 basis. T+0 means settlement happens the same session without moving assets onto an exchange first, reducing counterparty exposure during the settlement window. BitGo also confirmed the arrangement includes industry-standard legal documentation, which matters for prime brokers and custodians that require strict documentation before accepting an asset as eligible collateral.

The Republic of the Marshall Islands embedded USDM1 directly into its 20-year nationwide Universal Basic Income program. The bond is actively used to distribute government payments to citizens across islands with limited access to conventional banking. That dual function – yield-bearing institutional asset and government disbursement rail – is novel. A sovereign government issued debt natively on public blockchains, used that debt to fund domestic programs, and simultaneously offered it to institutional investors through regulated custody channels.

Rather than tokenizing an existing instrument, the RMI issued USDM1 onchain from day one. A natively onchain sovereign bond does not require a bridge between legacy settlement systems and blockchain rails. The asset starts onchain, settles onchain, and accrues yield onchain.

The multi-chain deployment across Stellar, Ethereum, and Solana is deliberate. Stellar has deep roots in cross-border payment corridors. Ethereum remains the dominant layer for institutional DeFi and tokenized assets. Solana offers throughput and low transaction costs for high-frequency settlement operations.