FOR IMMEDIATE RELEASE
BISHKEK, Nov. 20, 2025 – The Kyrgyz Republic today announced the launch of its new national stablecoin, USDKG, a digital token pegged one-to-one to the U.S. dollar and fully backed by physical gold. For its first issuance, USDKG dispatched approximately 50 million tokens (≈ US$50 million) into circulation.
The initiative is designed to bolster Kyrgyzstan’s cross-border payment infrastructure, enhance transparency in digital payments, and accelerate the nation’s entry into the Web3 economy. The issuance was conducted under the oversight of the state-owned issuer and structured to ensure that each USDKG token corresponds to actual gold reserves.
President Sadyr Japarov, Finance Minister Almaz Baketaev and the CEO of the state-issuer company officially launched the token in a ceremony in Bishkek. The tokens were issued on the Tron blockchain to facilitate fast, low-cost digital transfers.
Strategic Objective and Innovation
According to government statements, USDKG aims to provide a stable digital medium combining the enduring value of gold with the technological benefits of blockchain payment rails. By doing so, Kyrgyzstan is stepping towards modernizing its financial infrastructure and positioning itself in the emerging digital-asset economy.
The government emphasises that USDKG is not a central bank digital currency (CBDC) but a state-supported digital token issued via a dedicated entity and backed by physical gold.
The stablecoin is expected to drive cross-border trade, attract foreign capital, and support partnerships in fintech and digital services, especially within Central Asia. “The launch opens up new opportunities for Kyrgyzstan to strengthen its position in the global financial ecosystem,” officials said.
Operational Framework and Asset Backing
Each USDKG release is underpinned by corresponding gold reserves held within audited custodial vaults. The issuance is managed by a company with 100% state participation, while gold custody and operational responsibilities are delegated to an independent private firm under contract. This separation is designed to enhance transparency and align with regulatory requirements.
On-chain transparency, token interchangeability, and the stable-coin’s peg to the U.S. dollar are key features intended to support trust in the token. The issuance on the Tron blockchain is expected to reduce transaction costs and speed up payments, particularly across borders.
Market Impact and Future Outlook
Financial analysts regard this move as significant for the region. A state-issued, gold-backed digital token signals a shift in how emerging economies approach digital money and cross-border settlement. For Kyrgyzstan, the rollout of USDKG may enhance its investment appeal and stimulate innovation in fintech services.
Looking ahead, government sources state that the initial US$50 million issuance represents the first phase, with further expansion planned once systems are vetted. The country intends to leverage the token for international trade, remittances, and to reduce dependence on volatile fiat inflows.
FAQs
Q1: What exactly is USDKG?
USDKG is a gold-backed digital stablecoin issued by the Kyrgyz Republic. Each token is pegged to one U.S. dollar and fully backed by gold reserves.
Q2: How much was issued initially?
The first issuance comprised approximately 50 million USDKG tokens, equivalent to about US$50 million.
Q3: On what blockchain is USDKG issued?
USDKG tokens are issued on the Tron blockchain, which enables fast and cost-efficient token operations.
Q4: Is USDKG a central bank digital currency (CBDC)?
No. While state-supported, USDKG is not designated as a CBDC. It is issued by a state-participated company, with private entity oversight for gold custody and operations.
Q5: What’s the purpose of issuing USDKG?
The stablecoin is designed to modernize cross-border payments, attract fintech innovation, strengthen the country’s digital-asset infrastructure and stabilize value via gold backing.
Q6: What are the risks or considerations?
As with any stablecoin, key considerations include regulatory scrutiny, operational transparency, custody of backing assets, and broader adoption. Investors and users should monitor gold-reserve audits, token circulation, regulatory environment and interoperability with global payment systems.