Tinian to Launch First U.S. Public Stablecoin After Veto Overridden

The Northern Mariana Islands’ legislature has overridden a gubernatorial veto to approve a bill enabling the island of Tinian to launch a government-backed stablecoin. This makes Tinian, a small constituent island with just over 2,000 residents, a frontrunner in the race to issue the first stablecoin by a U.S. public entity, potentially beating out the state of Wyoming.

The Northern Mariana Islands House of Representatives voted 14-2 to override Governor Arnold Palacios’ earlier veto of the bill, which grants Tinian the authority to license internet casinos and issue the “Tinian Stable Token,” now officially named the Marianas US Dollar (MUSD). The decision follows a similar veto override by the territory’s Senate on May 9, where members voted 7-1 in favor.

Stablecoin: A Lifeline?

Tinian’s local economy, heavily dependent on tourism, has struggled in recent years. The push for a stablecoin-backed digital economy has been framed by local leaders and tech proponents as a transformative opportunity. 

MUSD will be backed by cash and U.S. Treasury bills held in the Tinian Municipal Treasury, and it will operate on the eCash blockchain — a lesser-known Bitcoin Cash fork.

Marianas Rai Corporation, a local tech firm, has been selected as the sole infrastructure provider for the stablecoin. While company representatives declined to provide extensive comment, they confirmed further announcements will be made on May 19.

Supporters of the bill, including Marianas Rai Corp. co-founder Vin Armani, believe the initiative could attract significant crypto investment and tax revenue without burdening the government financially. 

Clyde Norita, another company director and a cannabis entrepreneur, called the move a “lifeline” for the island’s deteriorating economy, emphasizing that it could spur economic growth without compromising cultural values or environmental integrity.

Mixed Reactions Reflect Economic Desperation

Despite broad legislative support, the decision has not been without criticism. Governor Palacios vetoed the original bill citing legal and constitutional concerns, warning that enforcement mechanisms were inadequate, particularly in preventing illegal gambling.

Independent House floor leader Marissa Flores echoed these concerns during deliberations. “It is true, we are in dire need of money,” she said, “but what I don’t like is when we are desperate… it always seems that we come back to casinos.”

In contrast, Republican Representative Patrick San Nicolas, a member of the Tinian delegation, hailed the measure as a pathway out of the crisis. “This bill does not depend on tourists or federal subsidies — it builds a digital industry generating revenue from a licensed jurisdiction,” he stated.

If successfully launched before July, MUSD will make Tinian the first U.S. public entity to issue a stablecoin, marking a big moment in the relationship between crypto and local governance.