The Kyrgyz Republic will launch the USDKG stablecoin in the third quarter of 2025, which is pegged 1:1 to the US dollar and backed by physical gold.
The initial gold reserves are $300 million, with plans to expand to $2 billion.
This project is authorized and supported by the Kyrgyz Ministry of Finance, financed by purchasing gold from the National Bank.
USDKG uses an over-collateralization model to deal with fluctuations in gold prices, and holders can exchange for physical gold, cryptocurrency, or fiat currency.
The plan aims to improve cross-border payment infrastructure in Central Asia and promote international trade, and will undergo independent third-party audits in the future to ensure transparency.#TrumpTariffs #USChinaTradeTalks