Kyrgyzstan launches $50M gold-backed USDKG stablecoin to modernize cross-border payments

Bishkek, Kyrgyz Republic, December 9, 2025 — Kyrgyzstan has officially launched USDKG, a gold-backed stablecoin pegged 1:1 to the U.S. 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 the President of the Kyrgyz Republic, Sadyr Japarov, Minister of Finance, Almaz Baketaev, and Biibolot Mamytov, the project’s operator, Gold Dollar’s CEO. The high-ranking officials at the ceremony turned on a symbolic “Launch Issuance” button, thus making it official that the flow of USDKG tokens had started.

The issuer of USDKG is a completely state-owned entity, thus assuring a high degree of investor confidence and institutional trustworthiness. The issuance of USDKG tokens has reached a total of 50,000,000, with each token being backed entirely by physical gold reserves. The facility's operational control, which also includes gold management, is conferred to a private firm registered in the Kyrgyz Republic that is under a contractual agreement with the USDKG issuer.

Such a division of duties guarantees the presence of independent operational supervision and removes USDKG from the category of Central Bank Digital Currency (CBDC). The company responsible for the management of USDKG's gold has set future plans to increase the backing to $500 million in this phase, with a long-term goal of $2 billion.

The stablecoin is fully compliant with FATF KYC/AML standards, and redemptions require standard identity verification. It is designed to facilitate financial inclusion.

Kyrgyzstan is among the first nations in the region to establish a comprehensive digital-asset regulatory framework, setting a precedent for state-supervised virtual currencies. The representatives of the government stressed that the primary objective of such initiatives is to improve economic transparency and efficiency of trade and not to pursue any geopolitical agenda. Moreover, the officials pointed out that USDKG is a complementary tool, rather than a competing one, to the national monetary system.

The project reconceptualizes conventional state-issued and commodity-backed digital assets narratives. The gold that backs the project provides a solid, inflation-proof base that can be verified and is in accordance with the rising market demand for clear, real-asset-backed stablecoins. By offering a combination of physical reserves and on-chain verification, USDKG presents a stability model of measurable changes that is uncommon in the current stablecoin landscape. The government-backed structure not only guarantees a direct regulatory framework based on accountability and public oversight but also enhances it.

The Kyrgyz initiative underscores a broader trend toward responsible digital-asset innovation in emerging markets. The government’s focus on regulatory discipline, transparency, and tangible reserves signals a pragmatic approach to blockchain-based modernization.

With USDKG, Kyrgyzstan positions itself as a regional first-mover in regulated asset-backed digital currencies — both bridging traditional finance and blockchain infrastructure and maintaining full sovereign oversight.

Media contact:

Gold Dollar — USDKG

business@usdkg.com 

www.usdkg.com