Kyrgyzstan has officially launched USDKG, a gold-backed stablecoin pegged 1:1 to the US dollar, with an initial issuance of $50 million, according to a PR shared with crypto.news.
summary
- USDKG is pegged 1:1 to the US dollar and is fully backed by gold reserves.
- The state-owned issuer aims to expand its reserves to $500 million and later to $2 billion.
- The project will be Central Asia's first state-supervised gold-backed digital currency.
USDKG is built on the Tron blockchain, audited by ConsenSys Diligence, and has Ethereum support planned for the future.
The tokens will be issued by OJSC Virtual Asset Issuance Company, a state-owned company under the Ministry of Finance. However, it is not a CBDC. Officials say the move is a first for Central Asia and combines government oversight with blockchain transparency.
As stated, his project is fully compliant with international anti-money laundering and know-your-customer standards, and each USDKG is “fully backed by physical gold reserves.”
The stablecoin's backers plan to grow its gold reserves to $500 million, with a long-term goal of $2 billion. Officials say the USDKG is designed to improve financial inclusion and payment efficiency while maintaining full transparency.
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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 series of amendments to the “Law on Virtual Assets” in three readings. Economy Minister Bakit Siddikov introduced the bill.
