USDKG to be backed by $300 million in physical gold reserves purchased from the National Bank of the Kyrgyz Republic, with planned expansion to $2 billion.
The Kyrgyz Republic has announced the upcoming launch of USDKG, a gold-backed stablecoin pegged 1:1 to the U.S. dollar. The stablecoin is expected to go live in the third quarter of 2025, backed by $300 million in physical gold. It will be issued with the permission and backing of the Ministry of Finance and financed through private purchases of gold from the National Bank of the Kyrgyz Republic.
The initiative is part of a broader strategy to enhance cross-border payment infrastructure in Central Asia and facilitate international trade through blockchain-based financial instruments. USDKG is designed for institutional-grade use and will be overcollateralized to mitigate volatility in gold prices.
Unlike commodity-pegged tokens, USDKG is not intended to track the price of gold. Instead, it maintains a strict 1:1 parity with the U.S. dollar, backed by audited gold reserves. The issuance and redemption process will allow institutional users to exchange tokens for physical gold, crypto assets, or fiat currency.
The Kyrgyz government-backed USDKG initiative aims to scale its gold reserve base to $2 billion, with independent third-party audits—targeting one of the Big Four accounting firms—to ensure full transparency into its collateralized structure.
USDKG will initially target cross-border transactions and trade in Central Asia, serving as a stable, gold-backed instrument for payments. Its architecture is built for expansion into the global financial ecosystem, with integration pathways across both institutional and decentralized finance.
Holders of USDKG will have the ability to redeem their tokens for physical gold, convert them into other digital assets, or withdraw equivalent amounts in fiat currency. The structure provides both flexibility and trust, backed by tangible reserves.
About USDKG
USDKG is a gold-backed, dollar-pegged stablecoin issued with the permission and backing of the Ministry of Finance, under the regulatory framework of the Kyrgyz Republic. Built to meet institutional standards, USDKG operates under a model of overcollateralization, independent auditing, and strict compliance standards. For more information, visit https://usdkg.com.