Kyrgyzstan is set to introduce its gold-backed stablecoin, USDKG, pegged to the U.S. dollar, with an official launch expected in the third quarter of 2025. Gabriel Guerra, an advisor to the project, revealed the details at the Token2049 event in Dubai.
The USDKG stablecoin will initially be backed by $500 million in gold reserves, with plans to expand to $2 billion in the coming years. The stablecoin’s value will be pegged 1:1 to the U.S. dollar but will also be supported by gold reserves held by the Kyrgyz Ministry of Finance. Independent audits will ensure the stability and security of the reserve system.
The introduction of USDKG is part of Kyrgyzstan’s strategy to improve cross-border transactions, particularly for remittances, which are a significant part of the country’s economy. By utilizing gold as a backing asset, the project aims to offer a stable and inflation-resistant currency option for users.
USDKG holders will have the ability to redeem their tokens for gold, cryptocurrency, or fiat currency, providing flexibility for international transactions. The stablecoin will cater to individuals and businesses seeking a more secure alternative to the traditional cryptocurrency market, with its 1:1 peg to the U.S. dollar providing stability.
The move positions Kyrgyzstan as an innovator in the digital asset space, and the USDKG is expected to attract interest from investors looking for a more stable, gold-backed digital currency.
