Kyrgyzstan launches $50M gold-backed USDKG stablecoin to modernize cross-border payments
Kyrgyzstan has formally launched USDKG, a gold-backed stablecoin pegged 1:1 to the U.S. greenback, with an preliminary concern of $50 million. The token is issued on Tron and totally audited by ConsenSys Diligence, with future growth slated to embody Ethereum assist.
The issuer, OJSC Virtual Asset Issuer, is a state-owned entity beneath the Ministry of Finance, working throughout the authorized framework established by the 2022 Law on Virtual Assets of the Kyrgyz Republic. The initiative represents a first-of-its-kind mannequin in Central Asia, merging sovereign oversight with blockchain transparency.
The launch ceremony was attended by Sadyr Japarov, President of the Kyrgyz Republic, Almaz Baketaev, Minister of Finance, and Biibolot Mamytov, CEO of Gold Dollar, the challenge’s operator. During the occasion, the dignitaries pressed a symbolic “Launch Issuance” button, formally initiating the circulation of USDKG tokens.
The issuance of USDKG is carried out by an organization with 100% state participation, making certain a high stage of investor belief and institutional reliability. A complete of fifty,000,000 USDKG tokens have been issued, every totally backed by bodily gold reserves. Operational management — together with gold administration — is delegated to a personal firm registered within the Kyrgyz Republic, beneath a contractual settlement with the USDKG issuer.
This separation of tasks ensures impartial operational oversight and positions USDKG exterior the classification of a Central Bank Digital Currency (CBDC). The firm accountable for managing USDKG’s gold reserves, has outlined plans to broaden the backing to $500 million within the subsequent section, with a long-term goal of $2 billion.
The stablecoin is totally compliant with FATF KYC/AML requirements, and redemptions require commonplace identification verification. It is designed to facilitate monetary inclusion.
Kyrgyzstan is among the many first nations within the area to set up a complete digital-asset regulatory framework, setting a precedent for state-supervised digital currencies. Government representatives emphasised that such initiatives goal to improve financial transparency and commerce effectivity, slightly than serve any geopolitical agenda. Officials additionally famous that USDKG enhances, slightly than competes with, the nationwide financial system.
The challenge reframes conventional narratives round state-issued and commodity-backed digital property. Its gold collateral serves as a verifiable, inflation-resistant basis, aligning with a rising market choice for clear, real-asset-backed stablecoins. By combining bodily reserves with on-chain verification, USDKG introduces a mannequin of measurable stability unusual within the present stablecoin panorama. The state-backed construction gives a transparent regulatory framework constructed on accountability and public oversight.
The Kyrgyz initiative underscores a broader pattern towards accountable digital-asset innovation in rising markets. The authorities’s concentrate on regulatory self-discipline, transparency, and tangible reserves indicators a realistic method to blockchain-based modernization.
With USDKG, Kyrgyzstan positions itself as a regional first-mover in regulated asset-backed digital currencies — each bridging conventional finance and blockchain infrastructure and sustaining full sovereign oversight.
Media contact:
Gold Dollar — USDKG
enterprise@usdkg.com
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