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USDKG is planned to be $2 billion, supporting $500 million in physical gold reserves from the Kyrgyzstan Treasury.
The Kyrgyz Republic has announced the upcoming release of USDKG, where gold-backed stubcoins are locked in US dollars at 1:1. Stablecoin is scheduled to be released in the third quarter of 2025, and the initial reserve of physical gold held by the Treasury is $500 million in physical gold.
The initiative is part of a broader strategy to strengthen cross-border payment infrastructure in Central Asia and promote international trade through blockchain-based financial products. USDKG is designed for facility grade use and is over-materialized to mitigate gold price volatility.
Unlike tokens on commodity pages, USDKG is not intended to track gold prices. Instead, it maintains a strict 1:1 parity with the US dollar supported by audited gold reserves. The issuance and redemption process allows users to exchange tokens for physical gold, crypto assets, or FIAT currency.
The Kyrgyzstan government plans to expand the USDKG reserve base to $2 billion and conduct regular third-party audits to ensure transparency and confidence in the asset collateral structure.
Initially, the USDKG plans to expand to Southeast Asia and the Middle East, targeting transactions and trade across Central Asia. Remittance flows currently account for around 30% of Kyrgyzstan’s GDP, highlighting the potential economic impact of streamlined digital payments.
USDKG holders have the ability to redeem the token for physical money, convert it to other digital assets, or withdraw equivalent amounts in Fiat currency. This structure provides both flexibility and trust supported by tangible national reserves.
About usdkg
USDKG is a dollar peg stablecoin issued by FinTech Solutions under the regulatory framework of the Kyrgyz Republic. Built to meet institutional standards, USDKG operates under a model of overmaterialization, independent auditing, and strict compliance standards. For more information, please visit our website.
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