Bishkek, Kyrgyzstan - The Kyrgyz Republic is set to launch USDKG, a gold-backed stablecoin pegged 1:1 to the U.S. dollar, with an initial backing of $300 million in physical gold.
The stablecoin is scheduled to launch in the third quarter of 2025. The initiative is supported by the Ministry of Finance and funded through private gold purchases from the National Bank of the Kyrgyz Republic.
USDKG aims to enhance cross-border payments and international trade in Central Asia using blockchain technology. It is designed for institutional use and will be overcollateralized to reduce gold price volatility.
Unlike tokens tied to gold's price, USDKG will maintain a 1:1 parity with the U.S. dollar, backed by audited gold reserves. Institutional users can exchange tokens for physical gold, crypto assets, or fiat currency.
The Kyrgyz government plans to increase its gold reserve backing USDKG to $2 billion. Independent audits, potentially by a Big Four accounting firm, will ensure transparency.
USDKG will initially focus on cross-border transactions and trade within Central Asia. Its design allows for future integration into the global financial system, including both institutional and decentralized finance.
Holders of USDKG can redeem their tokens for physical gold, convert them into other digital assets, or withdraw equivalent amounts in fiat currency. This structure provides flexibility and trust through tangible reserves.
USDKG is a gold-backed, dollar-pegged stablecoin, issued under the regulatory framework of the Kyrgyz Republic with the Ministry of Finance's backing. It is built to meet institutional standards, operating with overcollateralization, independent audits, and strict compliance standards. For more details, visit usdkg.io.