TLDR:
- BitGo Bank & Trust now offers qualified custody for USDM1, the first onchain sovereign bond
- USDM1 is backed 1:1 by US Treasuries and issued natively onchain by the Marshall Islands
- Go Network enables off-exchange settlement with T+0 timing across Stellar, Ethereum, and Solana
- Marshall Islands uses USDM1 to fund a 20-year Universal Basic Income program nationwide
BitGo Bank & Trust will provide institutional-grade qualified custody and off-exchange settlement for USDM1, the first natively issued onchain sovereign bond. The Marshall Islands issued this dollar-denominated instrument, which is backed 1:1 by US Treasuries.
Institutional clients can hold USDM1 in regulated cold storage and use it for collateral and settlement through BitGo’s Go Network. The service spans Stellar, Ethereum and Solana networks.
Custody Framework And Settlement Access
BitGo Bank & Trust operates as an OCC-regulated digital asset trust bank under BitGo Holdings, Inc. The bank now supports USDM1 within its qualified custody platform for institutional clients.
Segregated accounts, offline key management and institutional controls form the foundation of this custody structure. These features apply across all three supported blockchain networks.
BitGo announced the news in a post on X, describing USDM1 as the first natively issued onchain secured sovereign bond.
The company stated that institutional clients can hold this dollar-denominated sovereign bond in regulated custody on BitGo and use it for collateral and settlement through BitGo’s Go Network. The post confirmed availability across the three supported networks.
Through the Go Network Off-Exchange Settlement solution, eligible clients can deploy USDM1 to connected trading venues.
This access operates continuously, with settlement completed on the same day trades occur. Assets do not need to move onto an exchange for this process to function.
This structure aims to reduce exposure during the trading day and lower settlement risk for institutions. It also targets a reduction in pre-funding requirements across trading and financing operations.
BitGo positions this setup as a way to improve capital efficiency for institutional clients working with digital assets.
Sovereign Bond Structure And Broader Application
USDM1 was issued by the Republic of the Marshall Islands as a secured sovereign bond. The instrument follows a structure similar to a fully collateralized Brady bond under New York law. It is designed to accrue value daily, with minting and redemption tied to live signed price quotes.
Mike Belshe, CEO and co-founder of BitGo, addressed the announcement directly. He said USDM1 is “a different kind of asset – sovereign collateral with Treasury backing, built to fit how institutions already operate.” He added that custody access allows institutions to use the asset within infrastructure they already rely on.
Hon. David Paul, the Marshall Islands’ Minister of Finance, Banking and Postal Services, also commented on the partnership.
He noted that the government “truly appreciates BitGo’s partnership and is proud to see this infrastructure put to work built on trusted legal frameworks.”
He described USDM1 as anchored in the full faith and credit of the Marshall Islands government, secured by underlying US Treasury collateral.
Beyond institutional finance, the Marshall Islands has deployed USDM1 in a nationwide Universal Basic Income program.
The program distributes funds quarterly across more than 1,200 islands over a 20-year period. Financial institutions have also begun using USDM1 as a treasury instrument in daily operations.
