BISHKEK, Kyrgyzstan, November 6. The Kyrgyz Ministry of Finance announced the registration of USDKG, the world’s first state-backed stablecoin fully backed by physical gold, Trend reports via the ministry.
The State Service for Regulation and Supervision of Financial Markets officially registered USDKG, which is pegged to the US dollar at a 1:1 ratio and supported by gold reserves controlled by the state. The initial issue and listing on centralized and decentralized exchanges are expected in the coming days, with a separate notice to provide details on volume, mechanism, and timing.
According to the ministry, USDKG is being introduced as a financial instrument combining the reliability of gold with blockchain transparency. The project is part of a pilot program aimed at developing Kyrgyzstan’s digital economy and strengthening the country’s financial sovereignty.
The ministry noted growing international interest in USDKG and expects the stablecoin to bolster Kyrgyzstan’s position as a hub for financial innovation and investment. It also clarified that USDKG is not related to ongoing initiatives for the KGST stablecoin or the digital som, which remain under discussion by the National Council for the Development of Virtual Assets and Blockchain Technologies.
In contrast to certain stablecoins linked to gold or fiat currencies, USDKG integrates aspects of both, striving for the dollar's stability while being underpinned by the tangible asset of gold, all endorsed by a government. In Kyrgyzstan, USDKG has the potential to transform remittances for its substantial migrant worker demographic and enhance the digital economy by establishing a reliable, asset-backed digital currency for trade and investment.
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