Kyrgyz Republic to Introduce USDKG, a Gold-Backed Stablecoin Pegged to the U.S. Dollar, in Q3 2025

USDKG to be backed by $500 million in physical gold reserves from the Kyrgyz Ministry of Financing, with planned growth to $2 billion. The Kyrgyz Republic has revealed the upcoming launch of USDKG, a gold-backed stablecoin pegged 1:1 to the U.S. dollar. The stablecoin is anticipated to go live in the 3rd quarter of 2025. USDKG is created for institutional-grade use and will be overcollateralized to reduce volatility in gold prices. Unlike commodity-pegged tokens, USDKG is not planned to track the price of gold. The issuance and redemption process will permit users to exchange tokens for physical gold, crypto properties, or fiat currency. The government of Kyrgyzstan prepares to broaden USDKG’s reserve base to $2 billion and conduct regular third-party audits to ensure transparency and trust in the asset’s collateral structure. USDKG will initially target cross-border transactions and trade in Central Asia, with planned growth into Southeast Asia and the Middle East.

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Sam Boolman is a contributing writer at ChainIntel.org with a long-standing interest in cryptocurrency, blockchain technology, and emerging financial trends. A self-directed trader who actively invests his own capital, Sam follows the markets closely and brings a hands-on perspective to the fast-paced world of crypto journalism. With a background in business and digital media, Sam has written across a variety of sectors including tech, startups, and online finance. His curiosity and enthusiasm for the evolving digital economy fuel his exploration of Web3, decentralised finance, and market developments. Sam is passionate about making complex topics more accessible to everyday readers and continues to expand his knowledge through research, trading experience, and industry engagement.

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