Woofun AI reports that M1X Global has closed a $5.5 million seed funding round led by Paradigm, with participation from Breed VC. The startup previously partnered with the Republic of the Marshall Islands to issue USDM1, a dollar-denominated sovereign debt instrument backed 1:1 by Treasury bonds.

USDM1 is deployed on Stellar, Canton, and Solana, enabling rapid government aid distribution via the Lomalo wallet. Jordan Goldman, president and COO of M1X, noted that USDM1 represents the first native on-chain form of sovereign debt. The company aims to expand USDM1 as on-chain collateral in regulated markets, citing a recent integration with FDIC-insured Bank of Guam to connect with traditional banking infrastructure.