The Kingdom of Bhutan launches a gold-backed crypto on Solana

• Bhutan launches TER, a gold-backed crypto on the Solana blockchain.
• TER links physical gold to digital assets, boosting investor access globally.
• DK Bank is responsible for distributing TER, with Matrixdock handling token infrastructure.

Bhutan has made a striking move in the world of digital finance by launching TER, a gold-backed cryptocurrency built on the Solana blockchain.

The token, introduced through the Gelephu Mindfulness City (GMC), a special administrative region designed to attract global investment, represents a novel approach to bridging traditional asset security with blockchain technology.

Each TER token corresponds to a fixed amount of physical gold held in institutional custody, giving investors a regulated and transparent way to own gold digitally.

Gold meets blockchain in Bhutan

The TER token is distributed and custodied exclusively by DK Bank, Bhutan’s first licensed digital financial institution regulated by the Royal Monetary Authority.

The tokenisation infrastructure is provided by Matrixdock, a digital asset platform licensed under the GMC authority.

During the initial phase, investors can acquire TER directly through DK Bank, with all assets securely held in institutional custody.

Bhutan’s authorities have emphasised that TER combines the familiarity of traditional gold investment with the advantages of blockchain, including instant settlement, on-chain verification, and global transferability.

Gelephu Mindfulness City’s design allows for regulatory flexibility, enabling the launch of such digital assets under a sovereign-backed framework while remaining aligned with the nation’s core principles of transparency, sustainability, and long-term stewardship.

The initiative also underscores Bhutan’s goal of creating a digitally focused financial ecosystem, attracting international investors, and providing a city-level pilot for responsibly integrating crypto into the national economy.

Bhutan’s planned embrace of blockchain technology

TER is part of Bhutan’s broader and carefully planned embrace of blockchain technology.

The kingdom began Bitcoin mining operations in 2019, powered by its abundant hydroelectric resources, and has accumulated 5,984 BTC valued at more than $536 million, ranking it as the seventh-largest sovereign Bitcoin holder worldwide.

In addition to Bitcoin, GMC has announced plans to hold Ethereum and Binance Coin as part of its strategic reserves.

Bhutan has also partnered with Ripple to pilot a Central Bank Digital Currency, aiming to test a digital version of the national currency, the Ngultrum.

Beyond its crypto reserves, Bhutan has integrated blockchain into practical applications, such as its national digital identity system, which has been migrated to the Ethereum blockchain.

This makes Bhutan the first country to anchor a population-scale ID system on a public blockchain, providing more than 800,000 citizens with cryptographically verifiable credentials by early 2026.

Additionally, partnerships with Binance Pay have enabled the use of cryptocurrencies in the tourism sector, supporting over 100 digital currencies across more than 100 local merchants.

Setting a regional precedent

Bhutan’s TER token not only represents a leap in integrating blockchain with traditional finance but also reflects a strategic vision for sustainable economic innovation.

By connecting physical gold to digital assets within a regulated framework, the kingdom demonstrates how small nations can experiment with technology-driven financial models while preserving sovereignty and cultural values.

This development positions Bhutan as a pioneer in the use of blockchain for real-world asset tokenisation, potentially serving as a model for other countries seeking to modernise their financial ecosystems.

Notably, the launch of TER comes shortly after Kyrgyzstan unveiled USDKG, a gold-backed stablecoin pegged to the US dollar with an initial issuance of $50 million.

These initiatives highlight a growing regional trend where smaller nations are experimenting with state-backed digital assets tied to tangible reserves.