For the first known time ever, a guaranteed income pilot program is launching in the US that will hand out no strings-attached cryptocurrency, not cash.

According to a new Bloomberg report, the nonprofit GiveDirectly is administering the new program in partnership with top US crypto exchange Coinbase, which is funding the effort using Circle's dollar-pegged stablecoin USDC.

The program, called "Future First," is giving low-income, young adult residents of New York $12,000 in cryptocurrency over a five-month period. There are 160 participants, aged 18 to 30, who were chosen by a lottery. They have just begun to receive the payments in their Coinbase accounts.

It's the first known guaranteed income pilot program in the US to use cryptocurrency, not cash.

Participants will receive one $8,000 lump sum payment as well as five $800 payments.

Says Emma Kelsey, who leads US programs at GiveDirectly,

"You could imagine a lump sum being used for a security deposit, for example...

We have a hypothesis that for this age group, that lump sum model also makes a lot of sense, just given this pivotal life stage."

Darin Carter, head of Coinbase's US policy and grassroots advocacy, says the effort will "provide financial support" and "showcase how blockchain-based payments can have a positive impact."