PANews May 5 news, according to CoinDesk, Kyrgyzstan is planning to officially launch a stablecoin named Gold Dollar, with the token code USDKG, in the third quarter (Q3) of 2025.
The project advisor Gabriel Guerra introduced that USDKG will be a stablecoin pegged to the US dollar at a fixed rate of 1:1, with its value supported by physical gold reserves held by the Kyrgyzstan Ministry of Finance. The initial phase will utilize gold reserves valued at $500 million, with plans to expand the reserve size to $2 billion in the future, ensuring transparency through independent audits. To address the risk of price fluctuations in gold itself, USDKG will adopt an over-collateralization design. Its main goal is to facilitate cross-border payments and international trade, especially against the backdrop of remittances accounting for up to 30% of the country's GDP. The initial market focus of USDKG is Central Asia, with future plans to expand to Southeast Asia and the Middle East. It is noteworthy that USDKG is aimed at anchoring the value of the US dollar rather than tracking gold prices (unlike PAXG, etc.), and holders will be able to redeem it for physical gold, other crypto assets, or withdraw it as fiat currency in the future.
