Interest in stablecoins is steadily increasing! Another country is preparing to launch its own stablecoin! Here are the details.

The Kyrgyzstan government is preparing to launch a gold-backed stablecoin pegged to the US dollar in the third quarter of 2025. The digital currency, called "Gold Dollar" (USDKG), will initially be backed by gold reserves of 500 million dollars provided by the country's Ministry of Finance.

Kyrgyzstan to Launch Gold-Backed Stablecoin "USDKG" with 500 Million Dollar Reserve in the Third Quarter

This ambitious initiative is an important step taken to modernize the monetary infrastructure of the Central Asian country and to capitalize on the growing intersection between blockchain technology and commodity-backed finance.

According to officials, the support will be entirely in the form of physical gold and will be stored under government supervision. The state also plans to increase reserves to 2 billion USD depending on the success of the stablecoin's launch and adoption.

A representative from the Ministry of Finance said, "USDKG will combine the stability of gold with the usability of digital currencies. It will be a secure tool for both domestic and international payments."

This move comes at a time when there is a growing global interest in asset-backed stablecoins, particularly among governments seeking ways to maintain their monetary sovereignty while relying on stable assets.

By pegging the stablecoin to the US Dollar while only backing it with gold, Kyrgyzstan aims to build trust with foreign investors and provide a hedge against inflation.

Although the technical details and blockchain infrastructure partners have not yet been announced, it is expected that Kyrgyz officials will share more information ahead of the third-quarter launch.

As countries in Eurasia research dollarization strategies and adopt digital finance innovations, stablecoins can potentially serve as a regional payment instrument and an alternative reserve asset.