Kyrgyzstan shuts $50M USDKG months after UK sanctions
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- Stablecoins
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- USDT
Kyrgyzstan ended the USDKG stablecoin project and ordered the issuer liquidated after the token had launched in November 2025 as a gold-backed, dollar-pegged asset with about 50 million tokens issued. Holders can exchange their USDKG for fiat or USDT as the project moves to retire the token, and the shutdown papers do not say what will happen to the gold reserves.
Key claims & sources
What it means
Holders of USDKG are the immediate group affected, because they can now ask to swap the token for fiat or USDT while the project is being retired. That changes what they can do with the token today, and it also puts the government’s shutdown order in view for anyone still holding it.
Before this, USDKG was presented as a gold-backed token pegged to the dollar and built for cross-border payments, so the practical change is that the project is no longer operating in that form. The closure of Coin Nomad also shows that a state-linked crypto venue is being wound down alongside the token project, even as the retirement process itself is still underway.
What remains open is the status of the gold reserves tied to USDKG, because the shutdown documents do not specify where they go. The next detail that would settle that question is an official statement or filing that addresses the reserves directly. (per thedefiant.io)
Market reaction i
Coverage timeline
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