Tldr:
- BitGo Bank & Trust now offers qualified custody for USDM1, the first on-chain sovereign bond
- USDM1 is backed 1:1 by US Treasury securities and is issued domestically on a chain of Marshall Islands
- Go Network enables T+0 OTC settlement via Stellar, Ethereum, and Solana
- The Marshall Islands uses USDM1 to fund a 20-year, nationwide universal basic income program
Bitgo Bank & Trust You will save Eligible institutional custody and over-the-counter settlement of USDM1, the first sovereign bond issued domestically. The Marshall Islands issued this dollar-denominated instrument, which is backed by US Treasury securities at a 1:1 ratio.
Institutional customers can hold USDM1 in regulated cold storage and use it for collateral and settlement through BitGo’s Go network. The service spans across the Stellar, Ethereum, and Solana networks.
Custody framework and reaching settlement
BitGo Bank & Trust operates as an OCC-regulated digital asset trust bank under BitGo Holdings, Inc. The bank now supports USDM1 within its eligible custody platform for institutional clients.
Segregated accounts, key offline management and institutional controls form the basis of this custody structure. These features apply to all three supported features Blockchain networks.
BitGo announced the news in a post on X, describing USDM1 as the first secured sovereign bond issued domestically.
Institutional clients can hold these dollar-denominated sovereign bonds in regulated custody on BitGo and use them as collateral and settle through BitGo’s Go Network, the company said. The post confirmed availability across the three supported networks.
Through the Go Network Off-Exchange Settlement solution, eligible customers can deploy USDM1 on connected trading venues.
This access works continuously, with settlement completing on the same trading day. The assets do not need to move to an exchange for this process to work.
This structure aims to reduce exposure during the trading day and reduce settlement risk for institutions. It also aims to reduce pre-funding requirements through trading and financing operations.
BitGo positions this setup as a way to improve capital efficiency Institutional clients Working with digital assets.
The structure of sovereign bonds and their broader application
USDM1 is issued by the Republic of the Marshall Islands as a sovereign secured bond. The instrument follows a similar structure to fully secured Brady bonds under New York law. They are designed to accumulate value daily, with mintage and redemption linked to live signed quotes.
Mike Belshe, CEO and co-founder of BitGo, spoke about the announcement directly. USDM1 said it is “A different kind of asset – sovereign guarantees backed by the Treasury, designed to fit the way institutions already operate.He added that access to custody allows organizations to use assets within the infrastructure they already rely on.
presence. David Ball, Minister of Finance, Banking and Posts of the Marshall Islands, also commented on the partnership.
He pointed out that the governmentReally appreciates the BitGo partnership and is proud to see this infrastructure being implemented based on reliable legal frameworks.
He described USDM1 as resting on the full faith and credit of the Marshall Islands government, and secured by fundamental guarantees from the US Treasury.
behind corporate finance, The Marshall Islands has rolled out USDM1 in its nationwide universal basic income program.
The program distributes funds quarterly across more than 1,200 islands over 20 years. Financial institutions have also started using USDM1 as a treasury instrument in daily operations.
