In a landmark move that could place a tiny Pacific island at the forefront of blockchain innovation in the United States, the legislature of the Northern Mariana Islands has successfully overridden a gubernatorial veto to pass a bill that paves the way for the launch of a government-backed stablecoin on the island of Tinian.
The bill, which had initially been shot down by Governor Arnold Palacios on April 11, found renewed life when lawmakers rallied to override the veto. On May 9, the Northern Mariana Islands Senate backed the override with a 7-1 vote. Just days later, the House of Representatives followed suit with a decisive 14-2 vote—exceeding the two-thirds majority required in both chambers.
At the heart of the legislation is a provision allowing the Municipality of Tinian and Aguiguan to license internet casinos and to create and manage a new digital currency known as the Tinian Stable Token, or Marianas US Dollar (MUSD). The stablecoin will be pegged to the U.S. dollar and backed by reserves consisting of cash and U.S. Treasury securities, all held by the local treasury of Tinian.
With a population of just over 2,000 residents, Tinian is a small island within the Northern Mariana Islands, a U.S. commonwealth located in the Pacific Ocean north of Guam. The island’s economy is largely driven by tourism, but local leaders hope that the stablecoin initiative could signal a turning point for the region’s economic future.
The development puts Tinian in a race against the state of Wyoming to become the first public U.S. entity to issue its own stablecoin. Wyoming has also announced plans to launch a state-backed digital dollar before July, creating a narrow window for Tinian to claim the title of being first.
Despite the excitement, the initiative has not been without controversy. Governor Palacios had cited several concerns in his veto message, warning that the bill may raise constitutional red flags, fail to restrict activities solely to Tinian, and lack necessary mechanisms to regulate potential illegal gambling operations.
Independent Representative Marissa Flores was among the more vocal skeptics during legislative deliberations. While recognizing the island’s financial challenges, she expressed unease about using desperation as a motivator for such sweeping changes. “Every time we’re desperate, it always seems that we come back to casinos,” she said during the House session. “I don’t like to be pushed to a corner to make a decision based on fear.”
Others were far more optimistic. Republican Representative Patrick San Nicolas, a key member of Tinian’s delegation who helped draft the original bill, emphasized the economic urgency of the moment. “This legislation is about self-reliance,” he said. “It doesn’t depend on tourists or federal handouts. It’s about building a new, digital economy from the ground up.”
The technical side of the stablecoin launch will be handled by Marianas Rai Corporation, a local tech firm selected as the exclusive infrastructure provider for MUSD. The coin will run on the eCash blockchain, a project that emerged from the Bitcoin Cash ABC network in 2021.
Although Marianas Rai has not released detailed plans, a spokesperson indicated that more information about the stablecoin will be revealed on May 19. Co-founder and CTO Vin Armani has previously pitched the bill as a bold economic opportunity, predicting that it could attract billions in investment and generate substantial tax revenues for the island.
Clyde Norita, a director at Marianas Rai and a prominent local entrepreneur, also supported the bill during House deliberations. He painted a bleak picture of Tinian’s economic outlook but expressed confidence that the digital currency could stimulate business growth “without harming our culture, our environment, or our immigration status.”
As this groundbreaking stablecoin initiative moves forward, all eyes will be on Tinian to see if a small Pacific island can truly set the tone for how local governments in the U.S. engage with digital assets and blockchain technology.
