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The post Kyrgyzstan Launches Gold-Backed USDKG Stablecoin On Tron, Targets $500M Reserves appeared first on Coinpedia Fintech News
Kyrgyzstan has entered the global stablecoin race with the launch of USDKG, a gold-backed digital currency. The token is live on the Tron blockchain and is backed by real gold, with plans to grow reserves to $500 million, aiming to make cross-border payments faster and cheaper.
According to official announcements, Kyrgyzstan has officially launched a new stablecoin called USDKG. The stablecoin is pegged to the U.S. dollar, but instead of being backed by cash or U.S. Treasury bills, it is supported by physical gold reserves.
What makes USDKG stand out is its direct link to the government. The token is issued by a company owned by Kyrgyzstanâs Finance Ministry, placing it among the few state-linked stablecoins in the crypto market
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â That Martini Guy âż (@MartiniGuyYT) December 18, 2025Kyrgyzstan introduces USDKG, a dollar-pegged stablecoin secured by physical gold instead of conventional fiat reserves! pic.twitter.com/f2GiaGlpUK
To support the launch, the issuer has secured 376 kilograms of audited gold, which backs an initial supply of 50 million tokens, valued at $50 million.
And, by using gold instead of cash or algorithms, USDKG aims to offer stronger backing and greater trust.
Kyrgyzstanâs economy relies heavily on remittances, which account for over 30% of its GDP. Many citizens rely on money sent from abroad, often facing high fees and slow transfers.
To solve this, Kyrgyzstan launched the USDKG stablecoin, which aims to
The token is currently live on the Tron blockchain, chosen for its low fees and fast transactions. The team has also said that Ethereum support may come later.
USDKG works by allowing users to redeem their tokens after completing KYC verification. Once approved, holders can exchange USDKG for physical gold, U.S. dollars, local currency, or even other cryptocurrencies.Â
This flexibility is meant to make USDKG useful for daily payments and transfers, not just for trading.
Kyrgyzstan plans to grow USDKGâs gold reserves to $500 million, which would make the stablecoin much bigger and stronger. To build trust, the project will release public audits showing the gold backing each token.Â
If this works, USDKG could become a model for gold-backed digital money in the region.
This comes as the global stablecoin market has already grown to around $318 billion.
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