Kyrgyzstan has announced the launch of the USDKG gold stablecoin in Q3 2025.
Date: 2025-05-06 Author: Henry Casey Categories: CRYPTO PAYMENTS
USDKG is designed for cross-border payments and international trade. The project will begin its development in Central Asia and then expand to the Middle East and Southeast Asia. According to Guerra, the stablecoin will help solve the problem of transfers, which make up 30% of the country's gross domestic product.
To ensure the stability of the gold rate, the stablecoin will be issued with excess collateral. An important aspect will be the transparency of the process, for which it is planned to involve independent auditors. Unlike other gold stablecoins, such as PAXG or USDT, USDKG will not track the price of gold. Instead, the coin will be directly convertible into US dollars.
In addition, users will be able to exchange USDKG for physical gold, fiat money, or other cryptocurrencies. This will expand the possibilities of using the coin in international settlements.
At the same time, Changpeng Zhao (CZ), the founder of Binance, proposed to the President of Kyrgyzstan Sadyr Japarov to include Bitcoin and BNB in the national cryptocurrency reserve. Recall that in April 2025, CZ became a consultant to the government of Kyrgyzstan on cryptocurrencies and blockchain technologies.
