Tinian Set to Launch First US Government-Backed Stablecoin After Veto Override

In a landmark move, the tiny Pacific island of Tinian — part of the US territory of the Northern Mariana Islands — is set to launch a government-backed stablecoin following a legislative override of Governor Arnold Palacios’ veto.

On May 9, the territory’s nine-member Senate voted 7-1 to overturn the April 11 veto, and on May 14, the 20-member House followed with a 14-2 vote, securing the required two-thirds majority to enact the bill. The original bill had been unanimously passed by Tinian’s four-member delegation on March 12.

The legislation permits the local government of Tinian — home to just over 2,000 residents — to issue licenses to internet casinos and establish a stablecoin known as the Marianas US Dollar (MUSD). Backed by cash and US Treasury bills held by the Tinian Municipal Treasury, the MUSD will be launched on the eCash blockchain, a rebranded fork of Bitcoin Cash ABC.

The initiative may make Tinian the first public entity in the United States to issue a stablecoin, potentially beating out the state of Wyoming, which is targeting a similar launch before July.

Representative Marissa Flores (top left) had urged for “thoughtful deliberation” on the internet gaming and stablecoin bill. Source: YouTube

Marianas Rai Corporation, a local tech firm, has been selected as the exclusive infrastructure provider for MUSD. A company spokesperson stated that more details would be released on May 19.

Despite the passage, the bill has stirred political debate. Governor Palacios cited potential constitutional issues and a lack of enforcement safeguards against illegal gambling as reasons for his veto. Representative Marissa Flores, one of the two dissenting votes in the House, voiced concerns over the recurring reliance on casino-linked legislation during economic downturns, saying, “Every time we’re desperate, it always seems that we come back to casinos.”

Supporters of the bill argue it’s a necessary leap forward for the region’s struggling economy. Republican Representative Patrick San Nicolas, who helped introduce the bill, emphasized its potential to generate new digital revenue streams without reliance on tourism or federal subsidies.

“This bill does not depend on tourists or federal subsidies — it builds a digital industry generating revenue from a licensed jurisdiction,” San Nicolas stated.

Clyde Norita, director at Marianas Rai Corp. and a local business leader, described the measure as a lifeline for Tinian’s declining economy, noting that it could bring growth without harming local culture, the environment, or immigration rules.

If launched on schedule, the MUSD would not only mark a milestone for Tinian but could also serve as a precedent for blockchain-based financial innovation within US territories.