Kyrgyzstan has introduced USDKG — the world’s first official state-backed stablecoin coated with physical gold, Kazinform reports.
The asset was registered by the State Service for Financial Supervision under the Ministry of Finance of the Kyrgyz Republic. USDKG is pegged to the U.S. dollar at a 1:1 ratio and is additionally gold-plated, making it a unique financial instrument that combines the reliability of gold with the transparency of blockchain technology.
“Kyrgyzstan has officially become the first country in the world to issue a government stablecoin backed by physical gold. The initial issuance of USDKG and its listing on both centralized and decentralized exchanges are planned in the coming days. This launch is part of a pilot project aimed at developing the digital economy and strengthening the financial sovereignty of the Kyrgyz Republic,” the official statement said.
The project is not related to the national KGST stablecoin initiative or the development of the digital som. These are separate efforts being reviewed by the National Council for the Development of Virtual Assets and Blockchain Technologies. While all initiatives fall under the broader digital strategy, they differ in goals, mechanisms, and implementation frameworks.
