Kyrgyzstan Shuts Down $50M Gold-Backed USDKG Stablecoin
Kyrgyzstan has ordered the liquidation of USDKG issuer EVA and state-owned Coin Nomad Exchange, ending the gold-backed stablecoin project less than a year after its launch.
Kyrgyzstan has shut down its gold-backed USDKG stablecoin and ordered its issuer into liquidation, less than a year after the token's $50 million launch. According to CryptoNews, the Cabinet of Ministers issued Order No. 639-t on Aug. 20, directing the termination of USDKG operations on blockchain networks and the liquidation of issuer OJSC EVA and state-owned Coin Nomad Exchange.
Sanctions and Liquidation
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The shutdown follows UK sanctions imposed in May against the issuer, then known as OJSC Virtual Asset Issuer, under Britain's Russia sanctions regime. The UK government cited reasonable grounds to suspect the company supported or benefited the Russian government. Following the sanctions, Hong Kong-licensed OSL HK suspended its USDKG trading services just days after listing the token.
Coin Nomad Exchange, Kyrgyzstan's first state-owned cryptocurrency exchange, had already entered voluntary liquidation on Sept. 3. While the exchange recorded a net profit of 1.47 million Kyrgyz soms in the first half of 2026, its operating business suffered losses, and it fell behind on tax and statutory payments.
Redemption Process for Holders
The official USDKG website stated that the project is ending to optimize state participation in commercial companies and improve the management of state assets. Token holders can redeem their USDKG for fiat currency or Tether ($USDT) by contacting the project's official email address.
At the time of the announcement, CoinGecko showed 50 million USDKG in circulating supply, with the token trading near its $1.00 peg. The stablecoin was originally launched in November 2025 with reserves backed by 30 gold bars weighing approximately 376 kilograms, valued at $50.3 million.
Key facts
- Kyrgyzstan ordered the liquidation of USDKG issuer OJSC EVA and Coin Nomad Exchange.
- The shutdown follows UK sanctions imposed on the issuer in May over suspected links to Russia.
- Holders can redeem USDKG for fiat or USDT via the project's official email.
- USDKG launched in November 2025 with $50.3 million in gold reserves.
Source: crypto.news
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