Today the Republic of the Marshall Islands Ministry of Finance, Banking and Postal Services announced a partnership with Bank of Guam. The FDIC-insured institution that serves United States-associated Pacific Island regions will accept USDM1 for deposits and withdrawals while linking to the Lomalo digital wallet for its account holders. Officials made the announcement at the Forum Economic Ministers Meeting held in Majuro on June 22, 2026. The gathering unites finance ministers from the eighteen Pacific Islands Forum member nations and marks an important advance in the Republic's drive to modernize financial services for residents and enterprises.

USDM1 is a United States dollar-denominated sovereign debt instrument issued by the Republic of the Marshall Islands Government on public blockchain rails. The instrument is backed one-to-one by short-term United States Treasury securities held in bankruptcy-remote custody by a United States trust company. It follows New York law and grants holders a perfected first-priority security interest in the collateral, qualifying for HQLA treatment under Basel standards. M1X Global acts as coordinating agent in a public-private partnership with the Republic.

The Republic of the Marshall Islands uses the United States dollar as its sole legal tender under the Compact of Free Association with the United States. The nation's geography, consisting of more than one thousand islands and atolls spread across nearly two million square kilometers of ocean, has created recurring shortages of physical currency and long travel distances for outer-island residents seeking banking services. USDM1 enables round-the-clock government payments and aid transfers to any citizen holding a digital wallet regardless of location. Cleary Gottlieb served as issuer counsel and guided the structuring of the instrument under New York law with specialists in sovereign debt, UCC, secured transactions, creditors rights, netting and digital-asset infrastructure.

Through the new integration, Bank of Guam customers can move funds between their Lomalo wallets and deposit accounts.

USDM1 already powers the world's first nationwide Universal Basic Income program in the Republic of the Marshall Islands, delivering instant payments to citizens through Lomalo across one of the planet's most widely dispersed island nations.

David W. Paul, Minister of Finance, Banking and Postal Services, said: "Bank of Guam's participation marks a key milestone for the Republic. For decades geography has produced uneven access to banking across our islands. USDM1 was built to solve that challenge. With Bank of Guam now accepting USDM1 for deposits and withdrawals, Marshallese citizens and businesses gain a more flexible and resilient financial system backed by the full faith and credit of the Republic and secured by United States Treasury collateral."

Hilda C. Heine, President of the Republic of the Marshall Islands, said: "Financial inclusion underpins the economic future of the Marshall Islands. The integration of USDM1 with a United States-regulated commercial bank shows that citizens anywhere across our atolls can take part in a modern financial system. The Government is proud to see this infrastructure serving our people and values Bank of Guam's partnership in this important development."

Joaquin P.L.G. Cook, President and Chief Executive Officer of Bank of Guam, said: "For more than fifty years Bank of Guam has served as the People's Bank for communities across the United States-associated Pacific Islands. The Republic of the Marshall Islands has advanced financial access by creating USDM1, and we are pleased to support it. Connecting through the Lomalo wallet and ACH rails lets us deliver dependable United States dollar banking to Marshallese citizens and businesses wherever they reside and reinforces our commitment to convenient services throughout the region."

Mark Lurie, Co-Founder and Chief Executive Officer of M1X Global, said: "USDM1 was designed to satisfy the requirements of regulated financial institutions while meeting everyday citizen needs. Bank of Guam's integration shows that historical barriers to financial access are receding. The instrument meets standards for bank holdings as HQLA and can be sent directly to digital wallets where traditional infrastructure is scarce. It moves natively between the banking system and digital wallets without conversion. We are honored to assist the Republic of the Marshall Islands with this initiative."

The Government of the Marshall Islands continues to strengthen financial infrastructure for its citizens and to enhance the Republic's role as a responsible participant in the global financial system.

For additional information contact the Ministry of Finance, Banking and Postal Services at +692 625-8311 or by email at info@rmifinance.org.

Disclaimer:

The content of this communication is for informational purposes only and is not intended to market, offer or solicit the purchase or sale of USDM1 or any financial product directly from Bank of Guam or the Republic of the Marshall Islands.

USDM1 is offered and sold solely outside the United States in reliance on Regulation S under the United States Securities Act of 1933 as amended. The Republic of the Marshall Islands has not registered any offering of USDM1 under the United States Securities Act or any other United States federal or state securities laws. Accordingly USDM1 may not be offered, sold, pledged or otherwise transferred in the United States or to or for the account or benefit of United States persons as defined in Regulation S unless registered or exempt from registration under the Securities Act.

Nothing in this communication should be construed as a recommendation by Bank of Guam, the Republic of the Marshall Islands or any third party to acquire or dispose of USDM1 or any other security or to engage in any investment strategy. Prospective investors should read the offering memorandum in full before making any investment decision. The offering memorandum contains important information on the terms of the securities, associated risks and the financial condition of the issuer. Prospective investors are responsible for determining whether any investment is suitable for their objectives and should consult legal or tax professionals regarding their specific situations.

SOURCE The Republic of the Marshall Islands Government