PANews reported on May 5 that according to CoinDesk, Kyrgyzstan is planning to officially launch a stablecoin called Gold Dollar with the token code USDKG in the third quarter (Q3) of 2025.
Gabriel Guerra, consultant of the project, introduced that USDKG will be a stablecoin that is pegged to the US dollar at a 1:1 ratio, and its value is supported by the physical gold reserves held by the Ministry of Finance of Kyrgyzstan. In the initial stage, $500 million worth of gold will be used as reserves, and the subsequent plan is to 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 up to 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 aims to anchor the value of the US dollar rather than track the price of gold (unlike PAXG, etc.), and holders can redeem it for physical gold, other crypto assets, or withdraw it for legal currency in the future.
