NEW YORK — September 1, 2026 — Inca Digital, a leader in blockchain market intelligence and risk analytics, today announced the expansion of its real-time financial-integrity and cybersecurity monitoring of USDM1, the world’s first natively-issued, fully collateralized sovereign bond with T+0 settlement.
Inca’s framework supports AML/CFT compliance, anomalous activity detection and rapid incident response as USDM1 expands across regulated institutional markets. Inca Digital’s monitoring strengthens USDM1’s operational resilience as it is held, transferred and utilized as collateral in derivatives, repo, margin and secured-financing transactions, while supporting the privacy and confidentiality expected in institutional financial markets.
USDM1 is a US dollar-denominated sovereign bond natively issued onchain by the Republic of the Marshall Islands (RMI), secured on a 1:1 basis by short-duration US Treasury instruments. It combines the legal safeguards of traditional government securities with the efficiencies of 24/7 blockchain settlement and is structured in the style of a fully collateralized Brady bond under New York law, with an explicit customary waiver of sovereign immunity. Cleary Gottlieb advised as issuer’s counsel. M1X Global serves as coordinating agent.
USDM1’s growing use is supported by integration with regulated custody infrastructure, including Anchorage Digital Bank, BitGo Bank and Trust, NA, and tZERO’s regulated broker-dealer custody. USDM1 is also accepted by FDIC-insured Bank of Guam.
USDM1 has been utilized as dual-recourse sovereign collateral in ISDA and GDF’s Tokenized Collateral Working Group and US Industry Sandbox powered by Ownera, alongside M1X Global’s participation in the DTCC Industry Working Group, and in industry working groups including Bank of America, Citadel Securities and Societe Generale. STS Digital, a regulated principal derivatives dealer, has announced it will accept USDM1 from eligible counterparties and pledge the instrument as collateral across its over-the-counter derivatives, structured products and financing relationships.
USDM1 can be used in established derivatives, repo and secured-financing frameworks under standard ISDA, GMRA and GMSLA documentation. Unlike a tokenized representation of an asset held elsewhere, USDM1 directly represents a sovereign obligation.
This structure enables Inca Digital to monitor the integrity of the instrument and relevant onchain activity directly for AML/CFT compliance, anomalous activity, cybersecurity threats and rapid incident response, without requiring confidential commercial terms associated with institutional transactions to be made public.
As USDM1 moves across banks, dealers, custodians, settlement networks and secondary markets, Inca Digital provides a consistent financial-integrity framework that can extend across relevant onchain activity. Inca’s continuous monitoring supports the financial crime and operational resilience standards required for natively-issued sovereign collateral to enter institutional custody, netting, repo, margin and financing workflows, while preserving the confidentiality institutions expect across their trading and financing relationships.
Adam Zarazinski, CEO of Inca Digital, said:
“Institutional adoption of onchain assets requires robust financial-integrity controls operating continuously across the infrastructure where those assets are held, settled, financed and utilized as collateral. USDM1 has been designed with these requirements in mind. Inca is proud to provide real-time cybersecurity support, AML/CFT monitoring and risk-intelligence for the world’s first secured sovereign bond natively issued on a public blockchain. USDM1 combines the integrity monitoring institutional markets require with the confidentiality they expect.”
Mark Lurie, Co-Founder and CEO of M1X Global, said:
“A tokenized claim on an asset held somewhere else can only be monitored indirectly. USDM1 is issued natively onchain - the token represents a dematerialized sovereign bond - which improves the legibility and legal enforceability of the claim for holders, and means the integrity of the sovereign instrument can be monitored directly across its lifecycle. As USDM1 is increasingly accepted and pledged as secured sovereign collateral across institutional markets, Inca Digital provides continuous support across custody, settlement, repo, margin and financing workflows. Their support combines rigorous cybersecurity monitoring with tools, policies and procedures meeting global AML/CFT and illicit-activity monitoring standards.”
David W. Paul, Minister of Finance, Banking and Postal Services, Republic of the Marshall Islands, said:
“As the issuer of USDM1, the Republic of the Marshall Islands carries responsibilities to the citizens who receive aid and disbursements through it, as well as to the institutions that hold and utilize it. We have applied rigorous standards to USDM1 from the outset, including an established legal structure, full collateralization by short-dated US Treasuries held under US law, and independent financial-integrity controls. Inca Digital has been a trusted partner from the outset. As USDM1 is utilized more widely by institutions, its safeguards and Inca Digital’s support extend with it. These are standards that apply wherever the instrument travels.”
Beyond its applications as institutional collateral, USDM1 serves as a government aid and disbursement rail in the RMI, a geographically dispersed Pacific Island nation. USDM1 has been used for domestic aid disbursements on the Stellar network, with support from the Stellar Development Foundation. The same financial-integrity framework supporting its institutional use helps protect the integrity and resilience of the instrument across domestic applications.
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About Inca Digital
Founded in 2019, Inca Digital provides comprehensive data analytics, intelligence, and risk management solutions to the global crypto and financial industries, with a focus on security, transparency, and actionable insights.
About USDM1
USDM1 is a fully collateralized, USD-denominated sovereign bond natively issued onchain by the Republic of the Marshall Islands. It is structured in the style of a Brady bond under New York law, with an explicit customary waiver of sovereign immunity, and secured on a 1:1 basis by short-duration US Treasury instruments pledged to a US trust company in a bankruptcy-remote structure.
The Republic of the Marshall Islands operates exclusively on the US dollar standard under its Compact of Free Association with the United States. As a dollar-denominated sovereign obligation, USDM1 does not carry foreign-exchange or convertibility risk. Holders maintain enforceable rights to par redemption against a sovereign issuer and a perfected, first-priority security interest in Treasury collateral under UCC 8/9. For more on USDM1, see https://mof.gov.mh/usdm1-whitepaper/.
USDM1 is compatible with ISDA, GMRA and GMSLA agreements for derivatives, repo and secured lending, and is eligible for robust US close-out netting protections. Cleary Gottlieb Steen & Hamilton LLP serves as issuer’s counsel and advised with respect to the structuring of the instrument under New York law, with the participation of partners specializing in sovereign debt, UCC and secured transactions, creditors’ rights, netting and digital asset markets.
About M1X Global
M1X Global is a sovereign financial infrastructure and technology company bridging public finance and onchain capital markets. Operating in public-private partnership with the Republic of the Marshall Islands, M1X coordinates the legal, compliance, technology, custody and institutional infrastructure behind sovereign digital instruments.
Disclaimer
The content of this communication is for informational purposes only and is not intended to market, offer, or solicit you to buy or sell USDM1 or any financial product directly from Inca Digital, the Republic of the Marshall Islands, M1X Global or otherwise.
USDM1 is being offered and sold solely outside the United States in reliance on Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”). The Republic of the Marshall Islands has not registered any offering of USDM1 under the US Securities Act, or any other US federal and state securities laws. Accordingly, USDM1 may not be offered, sold, pledged or otherwise transferred in the United States or to, or for the account or benefit of, US Persons (as defined in Regulation S), unless they are registered, or exempt from, or not subject to, registration under the Securities Act.
Nothing in this communication constitutes, or should be construed as, a recommendation by Inca Digital, the Republic of the Marshall Islands, M1X Global or any third party to acquire or dispose of USDM1 or any other security, or to engage in any investment strategy or transaction.
Prospective investors are urged to carefully read the offering memorandum prepared in connection with the offering of USDM1 in its entirety, including all annexes, appendices, and supplements thereto, before making any investment decision. The offering memorandum contains important information regarding, among other things, the terms of the securities, the risks associated with an investment therein, and the financial condition and business of the issuer. Prospective investors are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for them based on their investment objectives and personal and financial situation. Prospective investors should consult an attorney or tax professional regarding their specific legal or tax situation.