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Kyrgyzstan orders liquidation of USDKG stablecoin issuer and Coin Nomad Exchange

Kyrgyzstan has ordered the liquidation of the state-owned issuer behind its gold-backed USDKG stablecoin as well as the state-owned Coin Nomad Exchange, concluding the stablecoin project months after it faced UK sanctions.

3D rendered gold tokens marked with the KG logo floating against a dark background.
Image: @coinbureau

The government of Kyrgyzstan has officially ordered the liquidation of the state-owned issuer of its gold-backed USDKG stablecoin, as well as the state-owned Coin Nomad Exchange, according to Coin Bureau and Crypto Briefing. Crypto Briefing reported that the winding down of these key crypto entities could undermine Kyrgyzstan's digital finance ambitions and weaken investor confidence and regional influence.[1][3]

USDKG was launched in November 2025 as a digital currency pegged 1:1 to the U.S. dollar and backed by physical gold. However, the project encountered international headwinds in May when the United Kingdom sanctioned the stablecoin's issuer under its Russia sanctions regime.[1]

Following the government's shutdown directives, the USDKG project announced that the token is coming to an end. CoinMarketCap and Coin Bureau reported that USDKG holders are able to redeem their balances for fiat currency or USDT, after which all of the roughly 50 million tokens in circulation will be burned.[1][2]

Key facts

  • Kyrgyzstan ordered the liquidation of the state-owned issuer of the USDKG stablecoin and the state-owned Coin Nomad Exchange.
  • USDKG was introduced in November 2025 with a 1:1 peg to the U.S. dollar backed by physical gold.
  • The United Kingdom sanctioned USDKG's issuer in May under its Russia sanctions regime.
  • The USDKG project announced that the stablecoin is ending and token holders can redeem their funds for fiat or USDT.
  • Approximately 50 million USDKG tokens will be burned following redemptions.
  • Crypto Briefing reported that the liquidations could harm Kyrgyzstan's investor confidence, regional standing, and digital finance goals.

Sources 路 3 sources

  1. CB

    Coin Bureau@coinbureauPost on X 路

    馃嚢馃嚞HUGE: Kyrgyzstan has officially ordered the liquidation of the state-owned issuer of its gold-backed stablecoin, months after UK sanctions. The government also ordered the liquidation of the state-owned Coin Nomad Exchange. The stablecoin, USDKG, launched in November 2025, pegged 1:1 to the US dollar and backed by physical gold. In May, the UK sanctioned its issuer under its Russia sanctions regime. The project says USDKG is ending, and holders can redeem for fiat or USDT. It also plans to burn its roughly 50 MILLION tokens.

    Open source
  2. CO

    CoinMarketCap@CoinMarketCapPost on X 路

    ICYMI: 馃嚢馃嚞 The Kyrgyzstan government ordered the gold-backed USDKG stablecoin to wind down, with all 50M tokens set to be burned after holders exchange them for fiat or USDT. https://t.co/97YBk6TGiW

    Open source
  3. CB

    Crypto BriefingArticle 路

    Kyrgyzstan orders liquidation of USDKG issuer and Coin Nomad Exchange Kyrgyzstan's liquidation of key crypto entities may undermine its digital finance ambitions, affecting investor confidence and regional influence. The post Kyrgyzstan orders liquidation of USDKG issuer and Coin Nomad Exchange appeared first on Crypto Briefing .

    Open source