Part 3 of 7: Financial Access and the Path to USDM1
Responsible System Design
The government considered many factors when evaluating approaches to deliver regular ENRA (Universal Basic Income) distributions.
First and foremost, approaches needed to be tailored to the RMI’s context and geography, and designed with citizens at the center. The government needed to be able to transfer funds to all citizens – including individuals without bank accounts – on a regular basis, so those who required assistance the most could access funds as quickly as possible. The government also needed to accommodate circumstances on islands where wire transfers are limited by infrastructure gaps, checks can take weeks to arrive and cash deliveries are constrained by weather and transport.
Delivery needed to be low-cost to maximize aid impact and occur with a high degree of transparency and traceability. It also needed to be able to accommodate future policy adaptations and targeting – in case, for example, future administrations elected to index ENRA amounts to inflation, layer additional support for high-need communities in structurally disadvantaged locations, or distribute funds on a more frequent cadence (monthly or weekly, for example, rather than quarterly.) To this end, the government committed to providing a range of distribution options to receive aid, giving recipients the freedom and dignity to select the format best suited to their personal needs.
Multiple Channels
The RMI executed the first ENRA distributions on November 26, 2025. Distributions included three main channels – paper checks for those who preferred them, direct deposits for those with bank accounts, and blockchain transfers to a custom digital wallet for citizens seeking faster, more reliable access across distances. The blockchain option began through a contained pilot allowing citizens to verify eligibility, enroll to receive ENRA benefits and receive disbursements through a mobile application – the Lomalo digital citizen wallet, designed specifically for the Marshallese people.
Stellar Development Foundation
The government worked with a range of leading global experts and partners in designing its blockchain disbursement option and digital citizen wallet program. This included generous grants and support from the Stellar Development Foundation (SDF).
The Stellar Development Foundation is a mission-driven nonprofit focused on creating equitable access to the global financial system through the growth and development of blockchain technology. SDF supports the Stellar network – one of the world’s longest-operating public blockchains – which has successfully processed more than 7 billion transactions over the past decade. Stellar Development Foundation’s work centers on emerging markets, underbanked users, fiscal-transfer programs in developing regions and blockchain solutions for financial inclusion including remittances and humanitarian payments. It also has expertise in developing auditable fund disbursements and related systems that help prevent misallocation and fraud.
The RMI government was attracted to working with the Stellar Development Foundation, in particular, on the strength of its previous partnerships. This includes SDF’s work with the United Nations Development Programme in Europe and Central Asia focused on accelerating progress toward Sustainable Development Goals, the SDF’s work with the International Rescue Committee to distribute aid in crisis zones including digital-disbursement systems in Ukraine, and the SDF’s support for the United Nations High Commissioner for Refugees in delivering aid to forcibly displaced communities.
Stellar Development Foundation has also partnered with the United Nations International Computing Center (the UN’s technology-solutions provider), supported financial-access applications and remittance corridors in Africa, and worked with leading U.S. banks to expand access to affordable financial services.
In the context of the RMI, Stellar Development Foundation was instrumental in supporting the development of USDM1 and Lomalo, creating value transfer and digital-delivery tools ensuring ENRA disbursements can reach even the most remote communities in the RMI. The RMI also appreciated SDF’s historical track-record engaging with regulators at the World Economic Forum, creating templates for NGO, fintech, and public-sector collaborations and publishing specialized resources for central banks and policymakers, alongside their partnership with MoneyGram creating a global network of cash on/off ramps in over 170 countries.
Blockchain Implementation
The decision to work with Stellar Development Foundation – and the government’s broader understanding and path toward utilizing blockchain as a distribution method – was a considered one nearly a decade in the making.