Svmuu News: M1X Global, a startup specializing in tokenized sovereign debt, has completed a $5.5 million seed round led by Paradigm, with participation from Breed VC and others.
It is reported that M1X Global previously collaborated with the Republic of the Marshall Islands to assist in the issuance of the on-chain sovereign debt instrument USDM1. This product is a tokenized sovereign debt instrument denominated in U.S. dollars, backed 1:1 by U.S. Treasury bonds, and natively issued by a sovereign nation on a public blockchain. USDM1 was initially issued on Stellar and is now also available on Canton and Solana.
Jordan Goldman, President and COO of M1X, stated that sovereign debt is one of the world’s largest asset classes, but prior to USDM1, it did not exist in a native on-chain form. The company aims to establish USDM1 as on-chain sovereign collateral and expand its use within regulated financial markets.
The initial use case for USDM1 is the distribution of domestic government aid. Citizens of the Marshall Islands can receive funds through the Lomalo wallet, enabling payments to be completed in seconds without relying on traditional correspondent banking networks. M1X also noted that its recent integration with Bank of Guam—an FDIC-insured bank in the U.S.—further connects USDM1 to regulated banking infrastructure. (The Block)