Bhutan Lances Gold-Backed Digital Token TER on Solana Blockchain

The Kingdom of Bhutan officially launched TER, a digital currency fully backed by physical gold and operating on the Solana blockchain infrastructure. This initiative is managed by the Gelephu Mindfulness City (GMC) Special Administrative Area, a region established to attract global capital and foster responsible innovation. The move positions Bhutan as a pioneer in offering a blockchain-native asset that represents real-world, physically secured gold, forming a key part of the nation's digital transformation strategy.

TER, which translates to “treasure” in the Dzongkha language, is guaranteed 100% by ethically sourced gold bullion held in audited, secure vaults. During this foundational phase, DK Bank, Bhutan's first licensed digital bank, serves as the exclusive distributor and custodian for the asset. Technologically, Matrixdock is responsible for providing the tokenization and reserve certification technology on the Solana network. Solana was selected due to its high transaction throughput and low operational costs, aiming to capture market share in the growing tokenized Real-World Asset (RWA) sector.

The introduction of TER is integrated into Bhutan’s broader, coordinated digital shift. The Kingdom began Bitcoin mining in 2019, utilizing its abundant hydropower resources, and currently holds 5,984 BTC, according to data from Arkham Intelligence. Furthermore, Bhutan is piloting a Central Bank Digital Currency (CBDC) in cooperation with Ripple. A significant element of the digitalization roadmap involves migrating the National Digital Identity (NDI) system to Ethereum, a transition expected to be finalized by early 2026 to improve infrastructure security and resilience.

As the official issuer, the GMC is establishing a new model for state-sponsored, asset-backed digital currencies. The region operates with independent executive, legislative, and judicial authority, enabling the implementation of business-friendly regulations. Specifically, the GMC enacted GMC Law No. 1 of 2024, or the Application of Laws Act 2024, which incorporates 18 laws from Singapore and 10 financial regulations from the Abu Dhabi Global Market (ADGM) to govern corporate law, taxation, and financial services, ensuring governance and transparency.

From a market perspective, placing gold on Solana allows TER to offer investors features such as instant settlement, simplified cross-border transfers, and verifiable collateral, capabilities that the traditional gold market often struggles to match. In the initial stage, investors will purchase TER directly through DK Bank, creating a transparent, on-chain bridge from the familiar process of gold acquisition. This development occurs as the global tokenized asset market is projected to reach trillions of dollars over the next decade, led by assets such as private credit and fixed-income securities.

Bhutan’s move follows increasing regional interest in gold-backed digital currencies. The Republic of Kyrgyzstan recently introduced USDKG, a gold-backed stablecoin with an initial issuance of $50 million, issued on the Tron blockchain and audited by ConsenSys Diligence. While USDKG is pegged to the US Dollar, this initiative underscores a wider trend where smaller nations are using blockchain technology to modernize the management of safe-haven assets while establishing measurable stability standards in the digital asset space.