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

Odaily reports 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 collaborated 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 natively issued on a public blockchain, 1:1 backed by U.S. Treasuries. 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 largest asset classes globally, yet 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 within regulated financial markets.

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