Northern Mariana Islands Approves Government-Backed Stablecoin MUSD

The Northern Mariana Islands has enacted legislation authorizing the issuance of a U.S. dollar-backed stablecoin, marking a significant step toward digital currency adoption in U.S. territories. The Marianas US Dollar (MUSD) will be issued by the Municipality of Tinian and Aguiguan, with reserves held in U.S. dollars and Treasury bills.

Governor Arnold Palacios’ veto was overridden by decisive votes in both legislative chambers—14-2 in the House and 7-1 in the Senate. The MOVE follows unanimous approval by Tinian’s delegation in March, signaling strong local support for the initiative.

This development positions the Pacific territory at the forefront of municipal cryptocurrency innovation, creating a potential blueprint for other jurisdictions exploring sovereign digital assets. The MUSD framework demonstrates how stablecoins can serve as functional extensions of existing monetary systems while maintaining traditional reserve backing.