Northern Mariana Islands Pass Stablecoin Bill, Paving Way for MUSD Launch

Highlights:

• The Northern Mariana Islands’ legislators denied the governor’s veto and passed a stablecoin bill.
• MUSD stablecoin will be fully supported by cash and Treasury bills held on the eCash blockchain.
• The bill also allows local licensing of internet casinos to support economic recovery.

A stablecoin bill was approved by the Northern Mariana Islands legislature following their overturning of Governor Arnold Palacios’ veto. The House approved the change by a vote of 14-2, after the Senate got a 7-1 override. The legislation makes it possible for Tinian’s local government to launch a stablecoin named the Marianas US Dollar (MUSD). The bill allows for issuing internet casino licenses that link the stablecoin to the effort of boosting the economy.

Tinian government to launch USD-backed stablecoin on eCash network

The government of Tinian is set to become the first public entity in the U.S. to issue a dollar-pegged stablecoin that will be launched on the eCash $XEC network, a layer-1 blockchain developed by Bitcoin ABC,…

— CoinNess Global (@CoinnessGL) May 16, 2025

Tinian, a tiny island with around 2,000 people, relies on tourism as its main economic activity. The local government wants to issue, operate, and redeem MUSD, which will be 100% backed by U.S. dollars and U.S. treasury bills as reserves. The stablecoin will function using the eCash blockchain, which is a development of Bitcoin Cash ABC.

Therefore, Tinian is leading Wyoming as both states set up their government-issued digital currencies, with Wyoming’s coming later in July. Wyoming announced it is developing the Wyoming Stable Token (WYST) for use in the state, also backed by cash and government bonds. 

According to Wyoming’s Stable Token Commission, tests have been performed on Ethereum, Solana, Avalanche, and a host of other platforms. The two jurisdictions are now among the growing number of U.S. entities looking into government-backed stablecoins, with the federal regulations still on hold.

MUSD and the Role of Marianas Rai Corporation

MUSD represents a digital form of the U.S. dollar managed by the local authorities. The reserves in the Tinian Municipal Treasury will consist of both cash and Treasury bills, fully ensuring that they are fully covered. Marianas Rai Corporation is the exclusive provider of technology solutions to the local government.

The company will take care of issuing and overseeing via smart contracts on the blockchain. Stablecoins that run on the system provide a new level of accountability that is not found in stablecoins run by private companies. The bill is designed to increase revenue without making things difficult for the government or affecting the culture or environment of the island.

It is believed that using a stablecoin for transactions will open up more opportunities for crypto-related investment. In addition, the bill allows for local licensing of online casinos, helping to add more digital assets to the economy.

Legal Concerns and Legislative Support for the Stablecoin Bill

The governor rejected the bill in April due to worries about its legality and constitutionality. He explained that the scope for execution and reach of jurisdiction was not clearly defined. However, the bill was brought back after the public meetings and the Tinian delegation’s influence.

Proponents of the bill stated that it would allow the city to no longer rely on tourist and government income. They mentioned that this could guide MUSD and online gaming to more economic growth. Some argued that the state should not rely so heavily on money from casinos and make decisions under any form of financial pressure.

Regardless of the raised concerns, the stablecoin bill was passed by the legislature, with a majority in all chambers. The bill is a result of efforts to push for growth by making better use of digital financial services.