- BitGo has announced that it will provide institutional custody and off-exchange settlement for USDM1, which will allow institutional investors to hold this asset in regulated cold storage.
- USDM1 is a sovereign USD-backed digital bond issued by the Republic of the Marshall Islands, and it is fully collateralized 1:1 by U.S. Treasuries.
- The launch will improve capital efficiency and reduce risks for institutional investors.
On July 17, BitGo, a leading digital asset infrastructure company, revealed that it will provide support for institutional-grade qualified custody and off-exchange settlement services for USDM1.
BitGo Expands Support for USDM1 for Institutional Investors
In the official announcement, BitGo announced that it is extending support for USDM1, which will allow institutional clients to custody a sovereign-backed digital instrument and utilize off-exchange settlement through its Go Network.
This service will allow institutions to hold USDM1 in a secure manner in qualified custody while accessing trading liquidity without moving assets off BitGo’s platform.
The integration uses BitGo’s established Go Network Off-Exchange Settlement (OES) infrastructure. This network is already providing support for various trading venues.
Institutions can allocate USDM1 balances for trading while assets remain in BitGo’s bankruptcy-remote, cold storage custody, with automated and daily settlements handled off-chain within the regulated ecosystem.
According to this official announcement, assets will be available in the client’s name which is backed by up to $250 million in insurance coverage. This insurance coverage will reduce counterparty, commingling, and operational risks. This will address a major point for institutional players, including accessing deep liquidity and using advanced instruments like USDM1 for collateral, repo, margin, or financing without the friction and risk of transferring assets to exchanges.
Mike Belshe, CEO and Co-founder of BitGo, said, “USDM1 is a different kind of asset – sovereign collateral with Treasury backing, built to fit how institutions already operate. Making it available for custody at BitGo means institutions will be able to access USDM1 within the same custody and settlement infrastructure they already rely on.”
Hon. David Paul, Republic of the Marshall Islands’ Minister of Finance, Banking and Postal Services, said, “The Government of the Marshall Islands truly appreciates BitGo’s partnership and is proud to see this infrastructure put to work built on trusted legal frameworks. USDM1 is anchored in the full faith and credit of the Republic of the Marshall Islands and is secured by U.S. Treasury collateral. The integration of USDM1 with BitGo infrastructure is a step towards a more flexible and resilient financial system.”
What is USDM1?
USDM1 is a USD-denominated sovereign bond debt issued natively on-chain by the Republic of the Marshall Islands (RMI), which is structured as a fully collateralized instrument under New York law and modeled after Brady bonds. Every token is backed in a 1:1 ratio by short-duration U.S. Treasury instruments held in bankruptcy-remote custody.
It is not a stablecoin, CBDC, or privately issued token but a sovereign obligation offering enforceable legal protections, including waivers of sovereign immunity. USDM1 was launched by partners like M1X Global, Cleary Gottlieb, Stellar, and Anchorage Digital. USDM1 is known for yield pass-through, T+0 settlement, and programmability for use in collateral, repo, payments, and financial inclusion, such as RMI government aid disbursements.
According to DeFiLlama, the total value locked in USDM1 is around $1.01 million. It is available on networks like Stellar, Canton, and Solana. Recently, it has also gained the attention of institutional investors, including a Paradigm-led seed round totaling $8.5 million for M1X Global in early July 2026 to scale its launch.
BitGo Expands USDM1 Support as Institutional Custody Race Intensifies
The announcement from BitGo comes amid the growing institutional demand for secured digital asset infrastructure. The company is continuously working on new features like BitGo Mint for stablecoins, supporting assets like USD1 and SoFiUSD, alongside quantum-resistant protections. It has also expanded off-exchange settlement partnerships with platforms including OKX, KuCoin, STS Digital, and Deribit via Copper.
USDM1 is already available on Anchorage Digital’s federally regulated platform. The integration with BitGo will open the door for qualified custody and also add a layer of options for clients seeking diversified providers.
