Kyrgyzstan has officially launched , a gold-backed stablecoin pegged 1:1 to the US dollar, with an initial issue of $50 million. The token is issued on Tron and fully audited by ConsenSys Diligence, with future expansion slated to include Ethereum support.
The issuer, OJSC Virtual Asset Issuer, is a state-owned entity under the Ministry of Finance, operating within the legal framework established by the 2022 Law on Virtual Assets of the Kyrgyz Republic. The initiative represents a first-of-its-kind model in Central Asia, merging sovereign oversight with blockchain transparency.
The launch ceremony was attended by Sadyr Japarov, President of the Kyrgyz Republic, Almaz Baketaev, Minister of Finance, and Biibolot Mamytov, CEO of Gold Dollar, the project’s operator. During the event, the dignitaries pressed a symbolic “Launch Issuance” button, officially initiating the circulation of USDKG tokens.
The issuance of USDKG is carried out by a company with 100% state participation, ensuring a high level of investor trust and institutional reliability. A total of 50,000,000 USDKG tokens have been issued, each fully backed by physical gold reserves. Operational control, including gold management, is delegated to a private company registered in the Kyrgyz Republic, under a contractual agreement with the USDKG issuer.
This separation of responsibilities ensures independent operational oversight and positions USDKG outside the classification of a Central Bank Digital Currency (CBDC). The company responsible for managing USDKG’s gold reserves has outlined plans to expand the backing to $500 million in the next phase, with a long-term target of $2 billion.
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