A bold stablecoin initiative from a tiny Pacific island is back on the table—and this time, it may just cross the finish line. The Senate of the Northern Mariana Islands, a U.S. territory in the Pacific, has reignited the stablecoin debate by overriding the governor’s veto of a controversial bill that could make the island of Tinian the first U.S. public entity to officially issue a stablecoin.
On May 9, the territory’s Senate voted 7-1 to override Governor Arnold Palacios’ earlier rejection of the legislation. The bill proposes a local framework that would allow Tinian’s municipal government to license online casinos—and more significantly, launch a fully backed stablecoin called the Marianas US Dollar (MUSD).
Now, the proposal heads to the 20-member House of Representatives, where it will need a two-thirds majority to officially overturn the governor’s veto and bring the bill into law.
If passed, Tinian could beat Wyoming—which also has its eyes on launching a state-backed stablecoin by July—becoming the first U.S. jurisdiction to roll out a government-issued digital dollar equivalent.
A Big Move from a Small Island
Tinian, part of the Commonwealth of the Northern Mariana Islands (CNMI), is home to just over 2,000 residents and relies heavily on tourism to fuel its modest economy. Seeking to recover from the economic fallout of the COVID-19 pandemic, local leaders have been exploring new ways to attract investment, and digital finance has become a focal point of that strategy.
The bill allows for the issuance and management of a digital token—MUSD—by the Tinian Municipal Treasury, fully backed by U.S. dollars and Treasury bills. The chosen technology partner, Marianas Rai Corporation, will provide the infrastructure to issue and redeem the token, which is built on the eCash blockchain, a fork of Bitcoin Cash.
Not Without Controversy
Governor Palacios vetoed the bill on April 11, citing legal uncertainties and concerns about constitutional compliance. He expressed doubts about whether such a regulation could be geographically limited to Tinian, given broader federal oversight of financial systems.
Senator Celina Babauta, the lone dissenting voice in the Senate override vote, echoed those concerns. She highlighted a lack of enforcement infrastructure and questioned whether the local government had the resources to responsibly manage online gaming and a digital currency system.
“We must remain compliant with federal law,” she said, adding that the region should explore a wider range of economic options beyond gambling.
Despite that pushback, supporters of the bill remain firm. Senator Karl King-Nabors, who co-authored the legislation and represents Tinian, defended the bill as a more transparent and secure way to manage online gaming.
“This stablecoin is tracked by software. It actually improves oversight and accountability,” he noted.
Fellow Tinian Senator Jude Hofschneider, who introduced the bill in February, described the initiative as a much-needed economic diversification strategy that does not require physical infrastructure or further burden the island’s environment.
Racing the Clock—and Congress
Marianas Rai Corp. co-founder Vin Armani told Cointelegraph that the company is already in talks with partners to bring MUSD to life and is “poised to act quickly.” Timing is crucial, especially as the U.S. Congress continues to struggle with its own stablecoin legislation.
Two federal bills—the GENIUS Act and the STABLE Act—have both hit political roadblocks due to partisan divisions and concerns over former President Donald Trump’s growing involvement in crypto.
As Washington stalls, Tinian is seizing the moment. If the CNMI House delivers a green light in the coming days, this tiny island in the Pacific may soon punch far above its weight by pioneering a U.S. public-sector stablecoin—one backed by real-world dollars and rooted in a community ready for economic transformation.
