Kyrgyzstan has launched USDKG, a groundbreaking gold-backed stablecoin pegged to the US dollar but backed by national gold reserves instead of traditional Treasury assets. This innovation highlights the growing diversification in stablecoin collateral models and creates new opportunities for wallet tokens like $BEST that simplify multi-chain stablecoin management.
about Gold-Backed USDKG Stablecoin & Best Wallet Token Rise
News from KGZ
Generated 0 posts last week CZ Denies Kyrgyzstan Crypto Bank Proposal Claims
Binance co-founder Changpeng ‘CZ’ Zhao has publicly denied reports that he proposed establishing a cryptocurrency-friendly private bank in Kyrgyzstan, creating a direct contradiction with statements from Kyrgyz President Sadyr Japarov. The conflicting narratives emerged after President Japarov told local media that CZ had visited the country in May and suggested creating a private bank that would handle both traditional and cryptocurrency services, ultimately resulting in Bereket Bank. This public disagreement highlights the complex relationship between cryptocurrency leaders and government officials in emerging markets seeking to capitalize on digital asset innovation.
about CZ Denies Kyrgyzstan Crypto Bank Proposal ClaimsKyrgyzstan Launches Stablecoin, Plans CBDC & Crypto Reserve
Kyrgyzstan has officially launched a national stablecoin pegged to its local currency while confirming ambitious plans for a central bank digital currency and exploring a digital asset reserve. The development follows high-level meetings with former Binance CEO Changpeng Zhao, positioning the Central Asian nation as an emerging leader in digital asset adoption and blockchain innovation.
about Kyrgyzstan Launches Stablecoin, Plans CBDC & Crypto ReserveRuble-Backed A7A5 Stablecoin Surges 250%, Hits $500M Market Cap
The Russian ruble-backed stablecoin A7A5 has defied international sanctions and regulatory scrutiny to become the world’s largest non-US dollar stablecoin, surging an astonishing 250% in a single day to reach a $500 million market capitalization. This remarkable ascent has positioned the Kyrgyzstan-issued cryptocurrency to capture nearly half of the entire non-dollar stablecoin market, demonstrating the resilience of national digital currencies amid escalating geopolitical tensions and challenging the dominance of traditional financial systems.
about Ruble-Backed A7A5 Stablecoin Surges 250%, Hits $500M Market CapKyrgyzstan Passes Crypto Law, Establishes State Reserve
Kyrgyz lawmakers have approved amendments to the ‘On Virtual Assets’ bill in three readings, introducing key definitions such as ‘state crypto reserve’ and ‘state crypto mining.’ The legislation, presented by Economy and Commerce Minister Bakyt Sydykov, establishes a legal framework for issuing and circulating stablecoins and tokenized real-world assets (RWAs). This development aims to bolster the country’s role in the regional crypto market and provide regulatory clarity for industry growth. The parliament announced the passage on Wednesday, marking a significant milestone in Kyrgyzstan’s embrace of digital assets.
about Kyrgyzstan Passes Crypto Law, Establishes State ReserveOFAC Sanctions Garantex Over $100M Illicit Crypto Transactions
The U.S. Treasury’s Office of Foreign Asset Control (OFAC) sanctioned Garantex, a Russian crypto exchange, for facilitating over $100 million in transactions linked to ransomware and cybercrime. Six businesses and three executives tied to the exchange were also blacklisted. The action contrasts with broader U.S. regulatory easing under President Trump, including the DOJ disbanding its crypto fraud unit. OFAC emphasized the role of stablecoins in evading sanctions, citing USDT and ruble-backed alternatives. This follows Garantex’s 2022 sanctions for ties to Russia’s financial sector amid the Ukraine conflict. The move underscores OFAC’s focus on crypto platforms enabling sanctions evasion.
about OFAC Sanctions Garantex Over $100M Illicit Crypto TransactionsUS Sanctions Firms Using Stablecoins to Evade Russian Sanctions
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on companies and individuals accused of using stablecoins to circumvent sanctions against Russia. Among the targets are A7 LLC, creator of the ruble-backed A7A5 stablecoin, and Kyrgyzstan-based Old Vector LLC, which facilitated large-scale transactions for sanctioned entities. The Treasury also sanctioned entities tied to Garantex, a crypto exchange used for illicit fund transfers, and its successor Grinex. These actions highlight OFAC’s intensified scrutiny of stablecoins, which regulators view as a growing threat to sanctions enforcement. Blockchain analytics firm Elliptic has updated its tools to help detect and block transactions linked to the sanctioned entities.
about US Sanctions Firms Using Stablecoins to Evade Russian SanctionsKyrgyzstan Crypto Boom Tied to Russian Sanctions Evasion
Blockchain intelligence firm TRM Labs has uncovered that Kyrgyzstan’s cryptocurrency sector is predominantly fueled by Russian demand, with nearly all activity linked to sanctions evasion. The report highlights how Kyrgyzstan-based platforms, such as Grinex and Meer, facilitate ruble-to-crypto transactions using Russian-backed stablecoins like A7A5, serving as conduits for both legitimate and illicit Russian entities. Kyrgyzstan’s pro-crypto laws, passed in 2022, enabled rapid growth, with transaction volumes skyrocketing from $59 million in 2022 to $4.2 billion in early 2024. However, experts warn that weak governance, corruption, and lack of anti-money laundering enforcement make the country a hotspot for exploitation by sanctioned groups, including paramilitary outfits like Rusich Group. The report also notes increasing trade ties with China, suggesting Kyrgyzstan’s role in aiding Russia’s procurement of dual-use military goods.
about Kyrgyzstan Crypto Boom Tied to Russian Sanctions EvasionBinance Launches HOME DeFi App with $200M Airdrop
Binance has launched the DeFi App (HOME), integrating it into its HODLer rewards program as the 22nd project. The exchange will airdrop 200 million HOME tokens (2% of supply) to eligible BNB holders who interacted with yield products between June 6–9. Users must complete KYC and hold BNB in Simple Earn or On-Chain Yields to qualify. The tokens will be distributed on June 12, followed by trading pairs like USDT and BNB. HOME, a gasless multi-chain SuperApp, claims $15B in trading volume and 400K users since launch. Binance also recently unveiled an Altcoin Liquidity Boost Program and partnered with Kyrgyzstan and Bhutan for crypto adoption. BNB’s price neared its ATH before a slight dip to $664.
about Binance Launches HOME DeFi App with $200M AirdropKyrgyzstan Adopts Gold-Backed Stablecoin as Legal Tender
Kyrgyzstan has announced plans to adopt USDKG, a gold-backed stablecoin pegged to the U.S. dollar, as legal tender to enhance financial stability and modernization. The stablecoin, backed by audited gold reserves, aims to become a part of daily transactions, from buying tea to paying for public transport. The government is also advancing its digital som initiative, while Binance collaborates to expand crypto adoption and blockchain education. Meanwhile, crypto mining tax revenues surged 30% in Q1 2025, reflecting the sector’s growing impact on the economy. USDKG’s gold backing offers stability, contrasting with volatile cryptocurrencies, making it an attractive option for citizens and businesses alike.
about Kyrgyzstan Adopts Gold-Backed Stablecoin as Legal TenderBinance Founder Advises Kyrgyzstan on Crypto Reserve Strategy
Binance founder Changpeng Zhao has advised Kyrgyzstan to consider Bitcoin and BNB as foundational assets for its National Crypto Reserve. His recommendation came after a two-day meeting with President Sadyr Japarov, where they explored blockchain’s role in the country’s digital economy. Kyrgyzstan has also partnered with Binance to promote crypto payments and education, including the rollout of Binance Pay for cross-border transactions. Additionally, the country is developing a gold-backed stablecoin, USDKG, pegged 1:1 to the US dollar and backed by $500 million in gold reserves, with plans to expand to $2 billion. The stablecoin will enable redemptions in physical gold, crypto, or fiat, enhancing cross-border trade and value storage.
about Binance Founder Advises Kyrgyzstan on Crypto Reserve StrategyBinance Partners with Kyrgyzstan to Launch Binance Pay
Kyrgyzstan has entered into a memorandum of understanding with Binance to launch Binance Pay, aiming to enhance digital payment solutions in the country. Binance co-founder Changpeng ‘CZ’ Zhao has recommended Bitcoin and BNB as the foundational assets for Kyrgyzstan’s national crypto reserves. Zhao, who reportedly holds 64% of BNB’s circulating supply, is also advising the National Investment Agency on blockchain initiatives. This move underscores Kyrgyzstan’s growing interest in cryptocurrency integration and Binance’s expanding global influence.
about Binance Partners with Kyrgyzstan to Launch Binance Pay