Kyrgyzstan’s USDKG Shows How Gold-Backed Stablecoins Are Evolving

Key takeaways

• Kyrgyzstan has launched USDKG, a USD-pegged stablecoin that the project says is backed by physical gold rather than cash and short-term US Treasurys.

• The token was first deployed on Tron with a reported initial issuance of 50 million units, with plans to expand to Ethereum.

• This article explains why gold-reserve narratives and state-linked structures can appeal in remittance-heavy emerging markets that still price in dollars.

• It also lays out the key due diligence checks: reserve custody and attestations, redemption mechanics, admin…