Kyrgyzstan’s New Stablecoin: The Gold Dollar (USDKG)
Kyrgyzstan is set to unveil a new stablecoin, the Gold Dollar (USDKG), in the third quarter of 2025, as reported by CoinDesk. This digital currency will maintain a value equivalent to that of the US dollar, supported by gold reserves managed by the country’s Ministry of Finance.
At its launch, the stablecoin will rely on $500 million in gold assets, with plans to eventually increase these reserves to $2 billion. To ensure confidence in its stability, the USDKG will undergo independent audits, enhancing transparency for its users.
Design and Purpose of the USDKG
In response to the inherent volatility of gold prices, the USDKG will be designed with an over-collateralization approach. This initiative primarily aims to facilitate international trade and cross-border transactions, a critical need given that remittances make up nearly 30% of Kyrgyzstan’s GDP.
Initially targeting Central Asia, the USDKG plans to broaden its reach to Southeast Asia and the Middle East as it develops.
Unique Attributes of the USDKG
Importantly, unlike other gold-related stablecoins, the USDKG will anchor itself to the US dollar rather than gold prices. It offers holders the option to redeem their tokens for physical gold, cryptocurrency, or local currency in the future.
This strategic move reflects Kyrgyzstan’s ambitions to enhance its digital financial landscape and increase its integration into the global economy.
