The Kyrgyz Republic has officially launched its first domestic gold-backed stablecoin USDKG. The ceremony, held at the Presidential Palace on November 20, was attended by President Sadyr Japarov, Finance Minister Almaz Baketayev, and the project’s CEO Vivolot Mamitov.
The first tranche includes 50,000,000 USDKG tokens issued on the Tron blockchain. Each token is pegged 1:1 to the US dollar and is fully backed by physical gold.
Officials say the launch is an important step towards strengthening Kyrgyzstan’s position in the global financial landscape. The initiative is expected to lay the foundation for the emerging Web3 infrastructure in the country and strengthen cooperation between the government and the private sector through blockchain-based services. It also aims to improve the country’s investment attractiveness by creating conditions for capital inflows and fostering new technology partnerships.
By introducing stablecoins backed by real assets, governments are seeking to build confidence in financial innovation and demonstrate that digital tools backed by assets can support economic development.
USDKG is issued by the state-owned company “Virtual Assets Issuing Company”, which ensures a high level of institutional oversight and reliability. Operational management, including the safekeeping of the gold, is carried out by a Kyrgyz private company based on a contract with the issuer. This separation of roles maintains independent operational control and prevents USDKG from being classified as a central bank digital currency (CBDC).
USDKG is a gold-backed stablecoin supported by the Kyrgyz Republic and designed to be a transparent, secure, and stable digital asset that combines the reliability of gold with the efficiency of blockchain technology.
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