This debut augments Bhutan’s extensive blockchain initiative, which is characterized by hydro-electric mining, Binance Pay adoption, and strategic Bitcoin stockpiles.
On Thursday, the Kingdom debuted a gold-anchored virtual asset, signaling the newest phase in its sustained blockchain assimilation drive.
According to a disclosure provided , Bhutan’s Gelephu Mindfulness City Special Administrative Region deployed TER on the Solana blockchain. This sovereign-authorized asset corresponds to vaulted bullion, with individual tokens denoting physical gold held in reserve.
“The latest move for the gold-backed token will have limited uptake, given it is for a specific use case in the GMC, but it again signals the Kingdom’s vision to align with stablecoin ecosystems while choosing Gold as a neutral asset to underpin the token,”
Musheer Ahmed, founder and managing director of Finstep Asia .
DK Bank, Bhutan’s inaugural digital financial institution under the regulation of the Royal Monetary Authority, has been designated as the singular distributor and custodian for the asset. The token’s designation is derived from the Dzongkha term for ‘treasure.’
Matrixdock, a financial services platform specializing in digital assets, will furnish the necessary tokenization infrastructure. This platform was granted a Financial Services Licence by the Gelephu Mindfulness City Authority in September.
“By issuing gold-backed digital tokens with sovereign branding, we are demonstrating how a crypto-friendly city can welcome responsible innovation while staying rooted in Bhutan’s values of transparency, sustainability, and long-term stewardship,”
Jigdrel Singay, Board of Directors of GMC, said in a statement.
During the initial phase, TER will be available for acquisition directly via DK Bank, and the resulting tokens will be retained in institutional safekeeping.
This unveiling succeeds Kyrgyzstan’s deployment of USDKG, a national stablecoin valued in excess of $50 million. The USDKG is collateralized by the state’s official gold reserves.
“I perceive gold as merely the initial phase,” Monica Jasuja, the Chief Expansion and Innovation Officer at Emerging Payments Association Asia .
She commented that “The subsequent phase could involve silver, scarce gemstones, or perhaps even tokenized cultural or ecological holdings.” She further observed that, “Bhutan has historically regarded its natural wealth as sacrosanct; tokenization enables commercial realization without physical removal.”
Years in the Making: Bhutan’s Long Path to Crypto Integration
Bhutan’s overarching cryptocurrency plan is founded upon Bitcoin mining endeavors initiated in 2019. These operations are sustained by the kingdom’s plentiful hydro-electric power sources.
The nation possesses 5,984 BTC, which is valued at more than $536 million. This inventory positions it as the seventh-largest sovereign owner globally, according to metrics compiled by Arkham Intelligence.
According to figures from Bitcoin Treasuries, the United States occupies the top position, with 328,369 BTC. This considerable holding is valued at over $29 billion.
In January, the Gelephu Mindfulness City unveiled intentions to maintain Bitcoin, Ethereum, and Binance’s BNB as part of its strategic reserves. The focus was placed on digital assets possessing substantial market capitalization and profound liquidity.
In May, the kingdom forged an alliance with Binance Pay to facilitate cryptocurrency payments throughout its tourism sector. The resulting integration is capable of supporting upwards of 100 virtual currencies and serves over 100 local businesses.
Two months prior, the kingdom seamlessly incorporated its National Digital Identity platform with Ethereum. As a result, it became the inaugural country to affix population-scale identity infrastructure onto a public blockchain network.
Access to cryptographically verifiable credentials is anticipated for more than 800,000 citizens by early 2026.
