Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Key Takeaways:
- Tinian has become the first public entity in the United States to approve and prepare the issuance of a USD-backed stablecoin (Marianas US Dollar, or MUSD).
- The MUSD stablecoin, backed by cash and U.S. Treasuries, and running on the eCash blockchain, is designed to help Tinian diversify its economy.
- The stablecoin legislation also authorizes internet casino licensing, strategically linking blockchain technology with tourism and online gaming.
Tinian, a small island in the U.S. Pacific territory of the Northern Mariana Islands, jolted U.S. crypto policy by becoming the first public entity in the United States to receive approval to launch a USD-backed stablecoin.
The move follows a successful vote by the Northern Mariana Islands House of Representatives to override a veto from the territory’s governor.
The new legislation allows the Municipality of Tinian and Aguiguan to issue the “Tinian Stable Token,” formally named the Marianas US Dollar (MUSD).
The stablecoin will be backed by cash and U.S. Treasury bills held in reserve by the Tinian Municipal Treasury, and launched on the eCash blockchain, a Bitcoin Cash ABC fork rebranded in 2021.
The bill also authorizes Tinian to issue licenses to internet casinos, tying the digital asset launch to tourism and online gaming. With a population of just over 2,000, Tinian is seeking new revenue streams as its economy struggles.
Tinian Overrides Governor’s Veto, Approves Marianas USD Stablecoin
On May 9, the territory’s nine-member Senate voted 7-1 to override Governor Arnold Palacios’ veto. Days later, the 20-member House followed with a 14-2 vote, clearing the two-thirds majority needed to push the bill through.
Governor Palacios vetoed the bill in April, citing legal concerns and a lack of enforcement measures to prevent illegal gambling. In a letter, he warned that the legislation may be unconstitutional and that its scope couldn’t be limited strictly to Tinian.
Supporters of the bill argue the move could bring in much-needed revenue without burdening the government.
“We need this legislation to unlock our potential,” said Republican Representative Patrick San Nicolas, a member of the Tinian delegation. “This bill does not depend on tourists or federal subsidies—it builds a digital industry generating revenue from a licensed jurisdiction.”
The Tinian government has partnered with Marianas Rai Corporation as its exclusive technology provider for the stablecoin infrastructure. The firm’s co-founder, Vin Armani, urged lawmakers to reverse the veto ahead of the vote, claiming the bill could “attract billions of dollars of investment and tax revenue” to the island.
However, not everyone agreed. Independent Representative Marissa Flores expressed concern over the bill’s connection to online gambling.
“Every time we talk about casinos, there’s always some kind of bitter pill to swallow,” she said. “It is true, we are in dire need of money, but what I don’t like is when we are desperate… Every time we’re desperate, it always seems that we come back to casinos.”
Despite the criticism, the bill passed and is expected to go into effect before July. Governor Palacios maintained his objections, warning that the measure could be unconstitutional and lack proper safeguards.
Still, with both chambers of the legislature in favor, Tinian now leads the way as the first U.S. public entity to authorize and prepare to issue its own dollar-backed digital currency.
Another State Advances Public Stablecoin Plans Amid Federal Regulatory Gridlock
While Tinian leads with the first U.S. public stablecoin on the eCash Network, another state, Wyoming, is moving steadily with its own state-backed initiative.
On May 12, the Wyoming Stable Token Commission announced a partnership with Inca Digital Federal LLC to strengthen oversight and security for the Wyoming Stable Token (WYST), expected to launch soon.
WYST will be fully backed by cash, U.S. Treasuries, and repurchase agreements, and is designed to be redeemable 1:1 with the U.S. dollar. The commission is currently testing the token across Ethereum, Solana, and Avalanche networks.
Meanwhile, at the federal level, stablecoin regulation remains stalled. Legislative efforts like the GENIUS Act and the STABLE Act have lost momentum, largely due to political rifts over Donald Trump’s increasing involvement in crypto ventures.
