On May 16, PANews reported that the Northern Mariana Islands, a U.S. Pacific territory, passed a bill allowing the issuance of stablecoins by the island of Tinian, overturning Governor Arnold Palacios' veto on April 11. The bill was approved in the House of Representatives with 14 votes in favor and 2 against, after being reconsidered by the Senate on May 9 with 7 votes in favor and 1 against. According to the bill, the Tinian government can issue, manage, and redeem the stablecoin 'Marianas US Dollar' (MUSD) through an authorized Treasurer. If issued before July, Tinian could become the first U.S. public entity to issue a stablecoin, ahead of Wyoming, which also plans to issue a stablecoin.
Tinian has a population of only about 2,000 and its economy relies on tourism. Its local government is one of the four municipalities of the Commonwealth of the Northern Mariana Islands. The island has selected the local tech service company Marianas Raye as the exclusive infrastructure provider for MUSD, and the stablecoin will be issued on the eCash blockchain. A spokesperson for Marianas Raye declined to comment but stated that more details would be announced on May 19.