Kyrgyzstan to Launch Gold-Backed Stablecoin Pegged to the Dollar in Q3

The Kyrgyz Republic will launch the USDKG stablecoin in the third quarter of 2025, pegged 1:1 to the US dollar and backed by physical gold. The initial gold reserve is set at $300 million, with plans to expand to $2 billion. This project is authorized and supported by the Kyrgyz Ministry of Finance, financed through gold purchases from the National Bank. USDKG adopts an over-collateralization model to address gold price fluctuations, allowing holders to redeem physical gold, crypto assets, or fiat currency. The plan aims to improve cross-border payment infrastructure in Central Asia and promote international trade, with future independent third-party audits to ensure transparency.