"Kyrgyzstan, a Central Asian country with a population of about 7 million, has entered the stablecoin market with USDKG. The token is intended to trade 1:1 with the US dollar, but it uses a different reserve model. Instead of relying on cash deposits and short-term US Treasurys, the project says USDKG is backed by physical gold. The initial issuance is 50 million tokens, roughly $50 million at the intended peg. It launched on Tron, and the team says support for Ethereum could follow."
"In many emerging markets, the stablecoin conversation is shifting toward how trust is built: reserve credibility, the politics of what counts as a reliable asset and structures that appear more supervised or state-linked. Gold, commodity reserves and government-adjacent issuers can fit into that framework. At the same time, the product still uses the dollar as the unit of account, the one businesses already use for cross-border trade and the one savers often default to when they do not fully trust the local currency."
USDKG launched as a USD-pegged stablecoin claiming physical gold as collateral rather than cash deposits or short-term US Treasurys. The project issued an initial 50 million tokens, roughly $50 million at the intended peg, on Tron with plans for Ethereum support. Gold-backed and government-adjacent reserve narratives can appeal in remittance-heavy emerging markets that continue to price in dollars by signalling alternative forms of trust and perceived supervision. Important due diligence areas include reserve custody and attestations, redemption mechanics, administrative controls, and the practical availability of distribution and liquidity in real-world markets.
Read at Cointelegraph
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