M1X Global secured a US$ 5,5 million investment in a seed round led by Paradigm. The raise also included participation from Breed VC, consolidating investors’ interest in solutions that combine blockchain and traditional financial markets.
According to Jordan Goldman, president and chief operating officer of M1X Global, the round saw demand above the available volume. "Several other companies were interested, but Paradigm and Breed were the right options for this allocation," the executive said. As he explained, Paradigm started negotiations before the other investors and took the largest share of the stake.
With the new round, the total raised by the company reaches US$ 8,5 million. The amount includes a US$ 3 million angel round held in March, with investors such as Balaji Srinivasan and Tama Churchouse.
USDM1 brings sovereign debt to the blockchain
M1X Global develops financial infrastructure for governments and supported the Republic of the Marshall Islands in issuing USDM1, a tokenized sovereign debt instrument denominated in U.S. dollars and fully backed by U.S. Treasury securities.
The asset was initially launched on the Stellar blockchain and later began operating also on the Canton and Solana networks, expanding its interoperability across different ecosystems.
"Sovereign debt is one of the world's largest asset classes, but before USDM1, it did not exist natively onchain despite its important role in market structure," said Goldman. "USDM1 is a modernization of existing market principles as onchain sovereign collateral."
Government already uses USDM1 for payments
The first use case for USDM1 is related to payments made by the Marshall Islands government. Citizens receive funds through the Lomalo digital wallet, enabling settlements in a matter of seconds, without depending on the traditional correspondent bank networks.
The company also integrated the asset with Bank of Guam, bringing blockchain infrastructure closer to the regulated banking system and facilitating its use by financial institutions.
Focus on the institutional market
In addition to government payments, M1X Global plans to turn USDM1 into collateral for institutional financial operations. According to Goldman, the asset was structured according to New York law, has full backing in short-term U.S. Treasury securities, and can be used in repurchase operations, margin, and secured lending.
USDM1 is also held in custody by the Anchorage Digital platform and was developed to meet the requirements of regulated financial markets, including 24/7 settlement and integration with clearing structures.
The company said the asset has already participated in working groups with institutions such as Bank of America, Citadel Securities, Virtu Financial, Tradeweb, and DTCC to assess how blockchain-issued sovereign debt can make collateral movement more efficient.
Platform expansion continues on the radar
While the immediate focus is to increase institutional adoption of USDM1, the company also intends to expand its infrastructure for banks, custodians, margin platforms, trading systems, and post-trade services.
Goldman said new agreements with governments are also part of the company’s plans. "We will also explore programs with other governments as opportunities arise."
For Arjun Balaji, a partner at Paradigm, the infrastructure developed by M1X Global meets a growing demand from financial markets.
"Markets that operate 24 hours a day, 7 days a week require collateral that can be moved 24 hours a day, 7 days a week," Balaji said. "USDM1 shows how sovereign debt can be issued natively on the blockchain. M1X Global brought together the rare combination of experience in governments, capital markets, and crypto needed to take this model to institutional scale."