Kyrgyzstan will launch USDKG in Q3, backed by national gold reserves

PANews reported on May 5 that according to CoinDesk, Kyrgyzstan is planning to officially launch a stablecoin called Gold Dollar and the token code is USDKG in the third quarter of 2025 (Q3).

The project consultant Gabriel Guerra said that USDKG will be a stablecoin that remains a 1:1 fixed peg to the US dollar, with its value backed by physical gold reserves held by the Kyrgyz Ministry of Finance. The initial stage will use $500 million worth of gold as a reserve, and the subsequent plan will expand the reserve to $2 billion and ensure transparency through independent audits. In order to cope with the risk of gold's own price fluctuations, USDKG will adopt an over-collateralized design. Its main goal is to promote cross-border payments and international trade, especially in the context of remittances accounting for as much as 30% of the country's GDP. USDKG's initial market focus is Central Asia, and plans to expand to Southeast Asia and the Middle East in the future. It is worth noting that USDKG is designed to anchor the value of the US dollar rather than tracking the price of gold (unlike PAXG, etc.), and holders can redeem it as physical gold, other crypto assets or withdraw it as fiat currency in the future.