Northern Mariana Islands Approves Legislation Allowing Tinian to Issue a U.S. Dollar-pegged Stablecoin

In a first-of-its-kind move, the Northern Mariana Islands has approved legislation allowing the island of Tinian to issue a U.S. dollar-pegged stablecoin.

The Northern Mariana Islands has approved legislation allowing the island of Tinian to issue a U.S. dollar-pegged stablecoin, becoming the first public U.S. entity to do so.

The bill, which was initially vetoed by Governor Arnold Palacios over constitutional and abuse concerns, has now been passed with unanimous votes from both the House and Senate to override the veto.

The law now allows Tinian to introduce the Marianas US Dollar (MUSD), a 1:1 pegged stablecoin to the U.S. dollar, which will be launched and managed by the municipal treasury of Tinian.

The stablecoin will be fully collateralized by cash and U.S. Treasury bills, providing a traditional level of financial assurance for the digital currency.

Local technology company Mariana Rai Corporation will be the exclusive infrastructure partner for the stablecoin.

The project will utilize the eCash blockchain, a Bitcoin Cash fork, providing a low-cost, scalable platform for stablecoin transactions.

This move by Tinian could be precedent-setting, as successful administration by lower U.S. governments will demonstrate how governments can experiment with digital currency infrastructures while navigating federal gray areas.

The developments mark a major milestone for stablecoins, proving that public-private partnerships can create secure, local solutions for crypto.

The development also reflects a growing interest in the application of blockchain to diversify island economies traditionally based on tourism.

On top of that, Tinian hopes the move will attract online casinos and digital businesses, diversifying an economy long reliant on tourism, without direct public spending.

While the venture is ambitious, it has not escaped criticism, with some warning that relying on gambling revenue while sidestepping U.S. regulations could raise flags.

However, its full legal backing and U.S. dollar collateral may help ease concerns.

Whether it becomes a one-off test bed or the start of a national trend remains to be seen, but Tinian has officially made history.