BitGo's Role in Custody and Off-Exchange Settlement for USDM1, the World's First Onchain Sovereign Bond

The Go Network OES is particularly notable: it enables institutions to access exchange liquidity without moving assets out of BitGo's regulated cold custody, mitigating counterparty and commingling risk . Assets stay in BitGo's bankruptcy-remote custody, in the client's name and under their control, while still being deployable for trading .

The service covers all three blockchains where USDM1 is available — Stellar, Ethereum, and Solana .

How USDM1 Is Structured and Backed

USDM1 is a USD-denominated secured sovereign bond issued by the Republic of the Marshall Islands. Each token is backed 1:1 by short-term U.S. Treasury instruments held in a bankruptcy-remote arrangement . The token itself is the bond — it represents secured sovereign debt directly .

Legally, USDM1 is structured under New York law as a fully collateralized Brady bond with daily value accrual . The bond carries a perfected first-priority security interest and a sovereign immunity waiver, giving holders direct, enforceable rights to the underlying Treasury collateral . Cleary Gottlieb served as issuer's counsel .

The interest rate is benchmarked to the 1-month U.S. Treasury rate (H.15) minus a spread of 200 basis points (2%) . For context, the 1-month Treasury rate stood at approximately 3.73% on July 17, 2026, meaning USDM1 would yield roughly 1.73% at that time .

The bond is also designed to qualify as High-Quality Liquid Assets (HQLA) under Basel standards, with Surus Trust Company serving as U.S. trustee, collateral agent, and additional custodian .

The UBI Program and Launch Timeline

USDM1 wasn't just a financial experiment — it was built to fund a real social program. In December 2025, the Republic of the Marshall Islands launched USDM1 on the Stellar blockchain and completed the world's first on-chain Universal Basic Income (UBI) disbursement . The ENRA program delivers instant digital transfers to over 33,000 residents across the nation's remote island communities, replacing what had previously been quarterly cash shipments .

The bond's yield funds this 20-year nationwide UBI program . The Stellar Development Foundation served as the endorsing infrastructure partner and issued a multimillion-dollar grant for USDM1's development . UBI disbursements began flowing via USDM1 in November 2025 .

Bank of Guam Integration (June 2026)

On June 22, 2026, the Republic of the Marshall Islands Ministry of Finance announced a collaboration with Bank of Guam, an FDIC-insured institution, to accept USDM1 deposits and withdrawals via the Lomalo digital wallet . This integration allows citizens to convert USDM1 into U.S. dollars at participating Bank of Guam branches, bridging the gap between the onchain bond and traditional banking .

Anchorage Digital's Custody Role

BitGo is not the only regulated custodian involved with USDM1. Anchorage Digital, home to America's first federally regulated digital asset bank, serves as a key infrastructure partner providing custody, settlement, and collateral management services that make USDM1 available to institutions . Anchorage Digital's role spans three layers:

• Custody: Safeguarding holdings with bankruptcy-remote regulated custody
• Settlement: Enabling secure onchain settlement
• Collateral management: Supporting the 1:1 backing by U.S. Treasury instruments

BitGo Holdings and the Fortune 500

The BusinessWire press release identifies BitGo Holdings, Inc. as listed on the NYSE under ticker BTGO , but no source in the current result set confirms or denies BitGo Holdings' inclusion in the 2026 Fortune 500. That claim remains unverified.

Summary of Key Facts