The island hopes to raise more than $18m (£14.6m) from the scheme by selling 127,000 sq/km units - with the money used to fight against illegal fishing and plastic waste.
In an interview before launching the scheme in New York on Tuesday, Mr Tagelagi said people have always had a close connection with the sea.
"Niue is just one island in the middle of the big blue ocean," Mr Tagelagi said."We are surrounded by the ocean, and we live off the ocean. That's our livelihood."He said Niueans inherited and learned about the ocean from their forefathers and they want to be able to pass it on to the next generation in sustainable health.
Most fishing in Niue is to sustain local people, although there are some small-scale commercial operations and occasional offshore industrial-scale fishing, according to the UN's Food and Agriculture Organisation. Mr Tagelagi said:"Because of all the illegal fishing and all the other activities at the moment, we thought that we should be taking the lead, to teach others that we've got to protect the ocean."
Niue is especially vulnerable to rising sea levels threatening its land and freshwater, and the island is at risk of more intense tropical storms charged by warmer air and waters.
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