Kyrgyzstan to Launch Gold-Backed Stablecoin USDKG

BlockBeats News, June 9th. According to Cointelegraph, the Kyrgyz Republic is set to launch the USDKG stablecoin in the third quarter of 2025. This coin will be pegged 1:1 to the US Dollar and backed by physical gold. The initial gold reserve is $300 million, with plans to expand it to $2 billion.

This project has received authorization and support from the Kyrgyz Ministry of Finance, financing the purchase of gold from the central bank. USDKG adopts an overcollateralization model to hedge against gold price volatility, allowing holders to redeem physical gold, cryptocurrencies, or fiat currencies. The initiative aims to improve Central Asia's cross-border payment infrastructure, facilitate international trade, and will undergo independent third-party audits in the future to ensure transparency.