Kyrgyzstan has officially launched USDKG, a gold-backed stablecoin pegged 1:1 to the USD, with an initial issuance of $50 million, according to PR shared with crypto.news.
Summary
- USDKG is pegged 1:1 to the U.S. dollar and fully backed by gold reserves.
- State-owned issuer aims to expand reserves to $500 million and later $2 billion.
- The project marks Central Asia’s first state-supervised, gold-backed digital currency.
USDKG is built on the Tron blockchain and audited by ConsenSys Diligence, with future support planned for Ethereum.
Tokens are issued by a state-owned company under the Ministry of Finance, OJSC Virtual Asset Issuer. However, it’s not a CBDC. Officials say the move represents a first for Central Asia — merging government oversight with blockchain transparency.
As stated, he project is fully compliant with international anti-money laundering and know-your-customer standards, and each USDKG “fully backed by physical gold reserves.”
The stablecoin’s backers plan to expand its gold reserves to $500 million, with a long-term goal of $2 billion. Authorities say USDKG is designed to improve financial inclusion and payment efficiency while maintaining full transparency.
Kyrgyzstan is one of the first countries in the region to establish a comprehensive digital-asset regulatory framework.
In September, the Kyrgyz Parliament adopted a set of amendments to its “On Virtual Assets” law in three readings. Economy Minister Bakyt Sydykov introduced the bill.