Kyrgyzstan has announced the upcoming launch of its national gold-backed stablecoin, USDKG, expected to go live in Q3 2025. The announcement was made by project advisor Gabriel Guerra during the Token2049 conference in Dubai, as reported by CoinDesk.
USDKG will be pegged 1:1 to the US dollar and backed by the country’s gold reserves, initially totaling $500 millionunder the control of the Ministry of Finance. The government plans to expand this reserve to $2 billion to further strengthen the stability and credibility of the asset.
Designed primarily for cross-border payments and international trade, the stablecoin will first roll out in Central Asiabefore expanding to the Middle East and Southeast Asia.
According to Guerra, USDKG could help address a major economic issue: remittances, which account for up to 30% of Kyrgyzstan’s GDP. To reduce exposure to gold price volatility, the stablecoin will be overcollateralized, and its operations will be audited by independent third parties to ensure transparency.
Unlike tokens such as PAXG, USDKG does not track the real-time price of gold. Instead, it maintains a fixed dollar peg. However, holders will be able to redeem the token for physical gold, fiat currency, or cryptocurrencies.
Meanwhile, Binance founder Changpeng Zhao (CZ) has proposed that Kyrgyzstan include Bitcoin and BNB in its national crypto reserves. In April 2025, CZ officially became a blockchain and crypto advisor to the Kyrgyz government.
