Kyrgyzstan has formally ended its state-backed gold stablecoin project USDKG, ordering the liquidation of issuer OJSC EVA and the state-owned Coin Nomad Exchange under Cabinet of Ministers Order No. 639-t dated Aug. 20. The official USDKG website said the shutdown covers the project’s activities on blockchain networks and directed holders to contact [email protected] to exchange tokens for fiat currency or USDT.
The $50 million project launched in November 2025, pegged 1:1 to the U.S. dollar and backed by gold. It first deployed on Tron and later added Ethereum support. A reserve review by Kreston Global inspected 30 gold bars weighing approximately 376 kilograms, valued at $50.3 million, and an audit verified the issuer’s control over its Ethereum and Tron wallets.
The closure follows UK sanctions. Britain’s Foreign, Commonwealth & Development Office designated OJSC Virtual Asset Issuer on May 26 under its Russia sanctions regime, saying there were reasonable grounds to suspect the company supported or obtained a benefit from Russia’s government through business of economic significance. Measures included an asset freeze, trust-services restrictions, director disqualification measures and internet-services sanctions. Two days after the designation, the issuer was re-registered as OJSC EVA. OSL HK had listed USDKG for professional investors on May 21, but stopped all USDKG services on May 27.
Coin Nomad Exchange had already begun voluntary liquidation. Its sole shareholder, the Ministry of Finance, approved liquidation on Sept. 3, and a Sept. 14 notice gave creditors one month to submit claims, placing the claims window around Oct. 14, 2026. CoinGecko still showed 50 million USDKG in circulating supply, trading near $1.00, with 24-hour volume of approximately $22,955 on Uniswap V3 and Curve. The shutdown notice did not provide a redemption deadline or detailed verification requirements.
The U.S. Treasury’s separate Oct. 1 designation of the A7 Network as a transnational criminal organization did not name USDKG or EVA, though Western authorities continue scrutinizing crypto networks operating through Kyrgyzstan.
