The Kyrgyz Republic has announced the release of USDKG, which has gold-backed stubcoins glued to the US dollar at 1:1. Stablecoin is expected to be released in the third quarter of 2025, and will be supported by $300 million worth of physical money. It is issued with approval from the Ministry of Finance and is supported in the purchase of private money from the National Bank of Kyrgyzstan.
USDKG is part of an initiative that uses blockchain-based tools to improve cross-border payments and support transactions across Central Asia.
Though backed by gold, USDKG is not designed to follow the market price of gold. Instead, they maintain a fixed value of one US dollar and audit the booking regularly to confirm assistance. Institutions may redeem USDKG for physical gold, fiat currency or crypto assets.
The Kyrgyz government is aiming to expand its programme to support up to $2 billion in gold reserves. An independent audit is planned by one of Big Four’s accounting firms to ensure transparency and reliability.
Initially, the USDKG will be used for cross-border trade and payments in Central Asia, but the infrastructure is being developed for future global integration. Stablecoin offers holders the option to redeem gold, digital assets, or FIAT tokens, combining flexible transaction options with asset support stability.
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