BitGo Bank & Trust, National Association, an OCC-regulated digital asset trust bank and subsidiary of BitGo Holdings, Inc. (NYSE: BTGO), announced it will provide qualified custody and off-exchange settlement services for USDM1, a USD-denominated secured sovereign bond issued natively onchain by the Republic of the Marshall Islands.

USDM1 is structured as a fully collateralized bond under New York law, backed 1:1 by U.S. Treasuries. It is available on the Stellar, Ethereum, and Solana blockchain networks. The bond is designed to accrue value daily, with mint and redemption activity executed against live signed price quotes.

Institutional clients will be able to hold USDM1 in segregated, regulated cold storage through BitGo's custody platform. Through BitGo's Go Network Off-Exchange Settlement solution, eligible clients can deploy USDM1 to connected venues around the clock with same-day settlement without transferring assets on-exchange.

U.S. clients of BitGo Bank & Trust may access custody services for USDM1 acquired through secondary market transactions only. The bond is being offered and sold outside the United States under Regulation S of the U.S. Securities Act of 1933 and has not been registered under U.S. federal or state securities laws.

"USDM1 is a different kind of asset - sovereign collateral with Treasury backing, built to fit how institutions already operate," said Mike Belshe, CEO and Co-founder of BitGo.

The Republic of the Marshall Islands has deployed USDM1 in what it describes as a nationwide Universal Basic Income program, distributing funds quarterly across more than 1,200 islands over 20 years. The bond is also in use with financial institutions as a treasury instrument, according to the press release.