Kyrgyzstan Launches $50M Gold-Backed Stablecoin USDKG on Tron Blockchain

Kyrgyzstan has officially launched USDKG, a gold-backed stablecoin pegged 1:1 to the U.S. dollar, with an initial issuance of $50 million (50,000,000 tokens). The token is issued on the Tron blockchain and has been fully audited by ConsenSys Diligence, with future expansion planned to include Ethereum support.

The issuance is handled by OJSC Virtual Asset Issuer, a state-owned entity under the Ministry of Finance, operating within the legal framework of the 2022 Law on Virtual Assets of the Kyrgyz Republic. The launch ceremony on November 20, 2025, was attended by President Sadyr Japarov, Finance Minister Almaz Baketaev, and Biibolot Mamytov, CEO of Gold Dollar, the project's operator.

USDKG is fully backed by physical gold reserves, with operational control delegated to a private company to ensure independent oversight, distinguishing it from a Central Bank Digital Currency (CBDC). The project aims to expand its backing to $500 million in the next phase, with a long-term target of $2 billion. It is compliant with FATF KYC/AML standards and designed to enhance financial inclusion, cross-border payments, and economic transparency in Central Asia.