Kyrgyzstan will launch a gold stablecoin pegged to the US dollar in the third quarter

According to Golden Finance, the Kyrgyz Republic will launch a USDKG stablecoin in the third quarter of 2025, which is pegged 1:1 to the US dollar and supported by physical gold. The initial gold reserves are $300 million, with plans to expand to $2 billion. This project has been authorized and supported by the Kyrgyz Ministry of Finance to finance through the purchase of gold from the national bank. USDKG adopts an over collateralization model to cope with fluctuations in gold prices, and holders can exchange it for physical gold, cryptocurrency, or fiat currency. The plan aims to improve the cross-border payment infrastructure in Central Asia and promote international trade, and will be subject to independent third-party audits to ensure transparency in the future.