Tinian will issue a US-backed stablecoin after lawmakers overruled the governor’s veto of the bill.
The new stablecoin called MUSD will be tied to online casinos as part of Tinian’s economic strategy.
Tinian could launch the first public US stablecoin ahead of Wyoming which plans to launch in 2025.
The Northern Mariana Islands has approved a bill to issue a government-backed stablecoin through its island of Tinian. Lawmakers voted to override Governor Arnold Palacios’ earlier veto of the legislation on May 15. The House passed the override with a 14-2 vote. The Senate previously voted 7-1 on May 9 to support the measure.
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The bill authorizes the Municipality of Tinian and Aguiguan to create a stablecoin called the Marianas US Dollar (MUSD). The token will be backed by U.S. dollars and Treasury bills held in reserve by the local treasury.
Stablecoin Linked to Online Gaming Licenses
The legislation also allows the local government to issue licenses for internet casinos. The stablecoin is tied to a wider economic recovery plan. This move aims to bring new revenue sources without raising taxes or increasing public debt.
Tinian’s government partnered with Marianas Rai Corporation as its exclusive technology provider. The company plans to launch MUSD on the eCash blockchain. This blockchain is a fork of Bitcoin Cash ABC.
Supporters believe the stablecoin can attract private investment and create new income for the territory. Lawmakers backing the bill said the economy needs alternatives to tourism and federal aid.
Governor Cited Legal and Regulatory Concerns
Governor Palacios initially vetoed the bill, citing unresolved legal concerns and weak regulatory protections. However, the legislature’s override means the bill will now become law.
Some lawmakers criticized the bill’s connection to online gambling. They expressed concern about repeating past efforts to rely on casino-based revenue. Others argued that the bill addresses long-term economic needs and supports local financial control.
Tinian Could Outpace Wyoming in Stablecoin Launch
If launched on time, MUSD would be the first government-backed stablecoin issued by a U.S. public entity. This would place Tinian ahead of the state of Wyoming, which is working on a similar project.
Wyoming passed the Wyoming Stable Token Act in March 2023. The state has been testing its stablecoin across blockchains like Ethereum, Solana, and Avalanche. Wyoming plans to launch its token by July 2025.
At the federal level, stablecoin regulation has stalled. Two major bills, the GENIUS Act and the STABLE Act, have lost political momentum. Lawmakers paused their efforts amid concerns over political involvement in the crypto space.
