Bhutan is taking a dramatic leap into the world of tokenized real-world assets, revealing plans for a sovereign digital token backed directly by the nation’s gold reserves.
The initiative comes from Gelephu Mindfulness City (GMC), the special administrative region tasked with spearheading some of Bhutan’s most experimental economic projects.
Key Takeaways
- Bhutan unveiled TER, a sovereign gold-backed digital token issued through Gelephu Mindfulness City.
- DK Bank will custody the physical gold while the token is built on Solana with Matrixdock handling tokenization.
- TER is part of Bhutan’s broader strategy to expand its blockchain ecosystem and modernize national finance.
Rather than issuing another generic gold product, the country is positioning TER, its new digital asset, as a state-anchored store of value designed for a blockchain-driven era. GMC says the project reflects Bhutan’s attempt to modernize its financial toolkit while preserving the economic stability associated with precious metals.
How the Token Works Behind the Scenes
The gold that supports TER will be held inside DK Bank, a government-supervised institution created specifically for handling digital asset operations. Instead of leaving the token’s technical infrastructure to a foreign blockchain, Bhutan selected Solana to host the asset because of its speed and capacity for high-volume transactions.
The tokenization process, including the on-chain representation of the underlying gold, is being built by Matrixdock, a firm known for its work in the real-world-asset (RWA) space. For now, the asset will remain under custody at DK Bank as internal systems are tested. Officials described the purchase flow for TER as intentionally familiar — something meant to feel like acquiring gold through a major financial institution, not a high-risk crypto experiment.
Though launch dates remain unspecified, the project is Bhutan’s first attempt at issuing a sovereign-backed commodity token.
Part of a Broader National Push Into Blockchain
Bhutan’s turn toward digital assets didn’t begin with TER. Over the last few years, the country has pursued an aggressively modern crypto strategy that contrasts sharply with its small geographic footprint.
The government quietly began mining Bitcoin using hydropower in 2019, eventually accumulating close to 6,000 BTC, according to on-chain analytics. Earlier this year, GMC also created a state-managed digital reserve holding Bitcoin, Ether, BNB, and a handful of smaller tokens — an unusual move for a sovereign entity, but one that aligns with Bhutan’s broader aim of becoming a regional crypto-finance hub.
Officials argue that blockchain innovation can support everything from payments infrastructure to foreign visitor experiences — especially in the tourism sector, one of Bhutan’s key economic engines.
Tourism Turns to Crypto for Convenience
Crypto payments have become an increasingly visible part of the country’s tourism operations. In partnership with DK Bank and Binance Pay, visitors can now settle hotel stays, tour packages, and entry fees using more than 100 different digital currencies. Over a thousand Bhutanese merchants have already adopted the new system.
Tourism authorities say the shift removes long-standing payment bottlenecks that made travel difficult for international guests. Damcho Rinzin, a senior official within the tourism department, noted that the crypto payment network has offered a level of accessibility the legacy payment rails never provided.
A Small Country, a Bold Experiment
By introducing TER, Bhutan is moving into territory usually explored by fintech startups, not national governments. The country is positioning itself at the crossroads of inflation hedging, commodity tokenization, and blockchain modernization — three themes shaping the global financial system.
If successful, Bhutan’s gold-backed token could become a model for other nations considering digital representations of sovereign assets. For now, TER marks another milestone in the kingdom’s increasingly unconventional approach to economic innovation.
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Source: https://coindoo.com/bhutan-announces-launch-of-sovereign-gold-backed-digital-token/