Kyrgyzstan to issue gold-backed USD-pegged stablecoin USDKG

14:35, 06 мая 2025, Bishkek - 24-kg.com news agency , Baktygul OSMONALIEVA

Kyrgyzstan is set to issue a gold-backed USD-pegged stablecoin USDKG. Gabriel Guerra, an advisor to the project, said at Token2049 conference in Dubai.

It is specified that in the third quarter of 2025, the Kyrgyz Republic plans to launch the USDKG stablecoin — a token backed by gold and pegged to the U.S. dollar exchange rate. The stablecoin is planned to be used primarily for cross-border transfers.

The project is being implemented with the support of the Finance Ministry of the Kyrgyz Republic, which must provide $500 million in gold as a token reserve, Gabriel Guerra said. According to him, the amount of security is planned to be increased to $2 billion in the future. USDKG reserves will undergo an independent audit.

«The stablecoin will be used in cross-border transactions and international trade with an initial focus on Central Asia and expansion into Southeast Asia and the Middle East planned for later,» the project advisor added.

Earlier, President of Kyrgyzstan Sadyr Japarov met with the founder of the largest crypto exchange Binance, Changpeng Zhao. The parties discussed issues related to the development of virtual assets and blockchain technologies in the country, as well as cybersecurity and the fight against digital threats.

Changpeng Zhao was also appointed public adviser to the head of the Kyrgyz Republic on issues related to the development of digital assets.