At a glance

  • USDKG’s website says the project is ceasing operations, including on blockchain networks, under Order No. 639-t of Kyrgyzstan’s Cabinet of Ministers dated 20 August 2026. Holders can ask to exchange tokens for fiat currency or USDT at [email protected].
  • The UK sanctioned the issuer, OJSC “Virtual Asset Issuer”, on 26 May. Kyrgyz outlet Akchabar reports that the order does not name USDKG and gives state-asset management as its reason.

USDKG is a dollar-pegged token backed by gold that Kyrgyzstan’s Finance Ministry launched through a state-owned issuer in November 2025. The notice on USDKG’s website appeared around 7 Oct. It points to the cabinet order and gives holders one route: email the project and ask to swap tokens for fiat or USDT. When we read it on 11 Oct it gave no deadline, no description of how the swap works and no pricing method, a gap Akchabar also noted.

Akchabar reports that the order tells the Finance Ministry to liquidate the issuer, now registered as OJSC “EVA”, and the state crypto exchange Coin Nomad Exchange, and that it does not mention the token itself. ForkLog reported that the order’s stated aim is to “optimize state participation in business entities”, that it also cancels a 2024 roadmap for a state “Cryptocurrency” pilot, and that the Finance Ministry decided on 3 September to liquidate Coin Nomad voluntarily. We did not read the order itself.

The sanctions backdrop

On 26 May the UK’s Foreign, Commonwealth and Development Office added OJSC “Virtual Asset Issuer” to its Russia sanctions list, as entry 17 of that day’s notice. The names “USDKG” and “USDKG.com” are listed as variations. The stated reason is that the UK considers there are “reasonable grounds to suspect” the company is or has been involved in obtaining a benefit from, or supporting, the Government of Russia through business of economic significance to it. The notice does not say USDKG moved sanctioned payments. Akchabar reports the company was re-registered as EVA on 28 May with the Finance Ministry still its sole founder. No official comment has linked the renaming, or the wind-up, to the sanctions.

What is not known

Akchabar cites Kyrgyzstan’s financial regulator for a registered issue of 50,140,738 tokens, about $50.1 million, and notes this need not equal what holders own. ForkLog, citing blockchain observers, puts circulation at about 50 million, with 47 million on Tron and 3 million on Ethereum, and says an audit by Kreston Global confirmed 30 gold bars of about 376 kg in December 2025. We did not check either figure on chain. Neither says what happens to the gold after the issuer is liquidated.

What it changes for users

Anyone holding USDKG has no published deadline or process; the only documented step is to email the project. what a dollar stablecoin is explains why redemption terms matter for any stablecoin. Related reading: Tether’s memorandum with Kazakhstan’s central bank and UK sanctions on Cryptomus’s owner and TokenSpot.

What to watch: a redemption deadline or procedure from the project or the Finance Ministry, and any statement on the gold reserve.

This article is for information only and is not investment advice.