Kazakhstan's central bank has announced a major initiative to build sovereign cryptocurrency reserves, allocating $350 million from the nation's gold and foreign exchange reserves for initial investment. The National Bank of Kazakhstan (NBK) revealed the plan at the Annual Business Review forum, with Deputy Governor Aliya Moldabekova confirming that a special account has been opened at the Central Depository for the cryptocurrency reserve.
The National Investment Corporation (NIC), a subsidiary of the NBK, will manage the funds. Initially, the NIC will refrain from direct cryptocurrency investments, instead utilizing hedge funds and venture capital funds. Moldabekova stated that five hedge funds have already been shortlisted for this purpose.
This initiative represents a significant expansion of Kazakhstan's previously announced Alem Crypto Fund. NBK Chairman Timur Suleimenov explained that the cryptocurrency reserve will become part of Kazakhstan's overall sovereign reserves managed by the central bank. The National Fund, which collects revenues from oil and natural gas sales, will also serve as a funding source.
The strategy includes two primary sources for accumulating crypto assets: direct investment of national reserves and consolidation of digital assets seized by law enforcement agencies. President Kassym-Jomart Tokayev has directed that seized cryptocurrencies be channeled into the Alem Fund to boost national reserves.
Suleimenov detailed in a Bloomberg interview that the fund will invest in cryptocurrency-based exchange-traded funds (ETFs) and shares of companies involved in the crypto industry. The central bank had previously indicated it was prepared to spend up to $300 million on such investments in the short term, with a long-term goal of holding up to $1 billion in digital assets.
This development is part of Kazakhstan's broader ambition to position itself as a Central Asian crypto hub. The country has taken several regulatory steps, including permitting digital asset circulation outside the Astana International Financial Center's special regime, lifting some mining restrictions, and legalizing crypto investments. Concurrently, authorities have intensified crackdowns on unauthorized activities, shutting down over 130 unlicensed exchange offices with a combined turnover of $123 million and restricting access to more than 1,100 unauthorized crypto service websites.
The Alem Crypto Fund, managed by the state-linked Qazaqstan Venture Group and backed by Binance's local branch, has already made its first investment by purchasing BNB tokens. Additionally, Kazakhstan launched a tenge-pegged stablecoin on the Solana blockchain in September 2025 through the Intebix crypto exchange.
