According to Cointelegraph, the Palau government has launched a "blockchain-based savings bond prototype system" and launched a public demonstration system. The project is supported by Japan's Ministry of Economy, Trade and Industry and Soramitsu Blockchain and aims to fund national infrastructure projects.

Palau's Ministry of Finance needs to finalize the bond issuance criteria and obtain government approval. About 18,000 Palau citizens can purchase the bonds through a mobile app. Palau President Surangel Whipps Jr. said the project will provide funds for key projects such as housing, small and medium-sized enterprise development, and roads.

The project was announced in July and is expected to be fully operational by 2025. Palau, a group of 340 South Pacific islands that uses the U.S. dollar as its currency, has no previous bond platform.

The Palau bond will run on the Hyperledger Iroha 2 blockchain on the Sora v3 Hub Chain platform. Soramitsu developed Iroha and contributed it to the Linux Foundation Hyperledger project and continues to provide technical and business support.

Soramitsu has also been involved in Cambodia’s bakong currency, Laos’ DLak central bank digital currency (CBDC) proof-of-concept, and the Solomon Islands’ Bokolo Cash CBDC proof-of-concept. DLak is modeled after the bakong.

Palau has been working with Ripple to launch a dollar-pegged stablecoin since 2021. The first phase of the project was successful at the end of 2022, and the second phase was promoted a year later.

Palau and Cryptic Labs developed the Root Name System (RNS) in early 2022 to provide the foundation for the country's digital residency project. RNS provides blockchain-based ID and customer authentication as a non-fungible token. The project was launched on BNB Chain in June 2022.