Tokenized sovereign debt platform M1X completes $5.5 million seed funding round, led by Paradigm

Odaily reported that tokenized sovereign debt startup M1X Global has completed a $5.5 million seed funding round, led by Paradigm, with participation from Breed VC and others.

It is reported that M1X Global previously partnered with the Republic of the Marshall Islands to assist in issuing the on-chain sovereign debt instrument USDM1. This product is a dollar-denominated tokenized sovereign debt instrument, 1:1 backed by U.S. Treasuries, and natively issued on a public blockchain by a sovereign nation. USDM1 was initially issued on Stellar and is now also available on Canton and Solana.

M1X President and COO Jordan Goldman stated that sovereign debt is one of the largest asset classes globally, but before 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 in regulated financial markets.

The initial application scenario for USDM1 is domestic government aid distribution. Citizens of the Marshall Islands can receive funds via the Lomalo wallet, enabling payments to be completed in seconds without relying on traditional correspondent banking networks. M1X also stated that its recent integration with the U.S. FDIC-insured Bank of Guam further connects USDM1 to regulated banking infrastructure. (The Block)