Kyrgyzstan ends gold-backed stablecoin project in under a year

Kyrgyzstan has shut down its state-backed gold-collateralized stablecoin project, USDKG, less than a year after launch, Asia Today reported. USDKG said in an official X post on Oct. 6 that it had suspended operations under a Kyrgyz government decision. With the project ending, activity on its blockchain network will also stop, and existing token holders can exchange USDKG for fiat currency or Tether (USDT) via email. The Kyrgyz government said the move was not due to a failure of USDKG itself, but was aimed at optimizing state participation in business and improving the efficiency of state-owned asset management.