TLDR
- Bhutan launched TER, a gold-backed digital token on Solana through Gelephu Mindfulness City, with each token representing physical gold held in custody
- DK Bank, Bhutan’s first licensed digital bank, will distribute and custody the tokens, with Matrixdock providing tokenization infrastructure
- The launch follows Kyrgyzstan’s USDKG gold-backed stablecoin worth over $50 million, showing a trend of smaller nations issuing asset-backed digital currencies
- Bhutan holds 5,984 BTC worth over $536 million, making it the seventh-largest sovereign Bitcoin holder globally
- The country has integrated crypto across multiple sectors including Bitcoin mining since 2019, tourism payments with Binance Pay, and national digital identity on Ethereum
Bhutan introduced TER, a gold-backed digital token on Solana’s blockchain on Thursday through Gelephu Mindfulness City. Each token represents physical gold held in custody by DK Bank.
⚡️JUST IN: BHUTAN LAUNCHES GOLD-BACKED TOKEN ON SOLANA
Bhutan is rolling out $TER, the FIRST sovereign-supported, physical gold-backed digital token on #Solana, this Dec. 17. pic.twitter.com/SsWyv441My
— Coin Bureau (@coinbureau) December 11, 2025
The name TER comes from the Dzongkha word for treasure. Gelephu Mindfulness City is a special administrative region in Bhutan designed to attract global investment using digital assets.
DK Bank will serve as the exclusive distributor and custodian for the token. The bank is Bhutan’s first digital bank regulated by the Royal Monetary Authority.
Matrixdock provides the tokenization infrastructure for the project. The digital asset financial services platform received a Financial Services License from Gelephu Mindfulness City Authority in September.
During the first phase, investors can purchase TER directly through DK Bank. The tokens will be held in institutional custody.
Gold-Backed Token Trend Emerges
The launch comes days after Kyrgyzstan unveiled USDKG, a gold-backed national stablecoin. The stablecoin is valued at over $50 million and backed by state gold reserves.
Jigdrel Singay, Board of Directors of GMC, said the token demonstrates how a crypto-friendly city can welcome innovation while staying rooted in Bhutan’s values. These values include transparency, sustainability, and long-term stewardship.
Musheer Ahmed, founder of Finstep Asia, noted the token will have limited uptake given its specific use case in GMC. However, he said it signals Bhutan’s vision to align with stablecoin ecosystems using gold as a neutral asset.
Bhutan’s Bitcoin Holdings and Mining
Bhutan holds 5,984 BTC valued at over $536 million. This makes it the seventh-largest sovereign Bitcoin holder globally according to Arkham Intelligence data.
The United States ranks first with 328,369 BTC valued at over $29 billion. Bitcoin Treasuries data shows this ranking among countries holding Bitcoin.
Bhutan’s crypto strategy began with Bitcoin mining operations launched in 2019. The mining uses the nation’s abundant hydroelectric resources for power.
Digital Asset Strategy Expands
In January, Gelephu Mindfulness City announced plans to hold Bitcoin, Ethereum, and Binance’s BNB as strategic reserves. The city prioritizes assets with high market capitalization and deep liquidity.
In May, Bhutan partnered with Binance Pay to enable crypto payments across tourism services. The integration supports over 100 cryptocurrencies and more than 100 local merchants.
Two months ago, Bhutan integrated its National Digital Identity platform with Ethereum. The kingdom became the first country to anchor population-scale identity systems on a public blockchain.
Over 800,000 citizens are expected to gain access to cryptographically verifiable credentials by early 2026. Monica Jasuja, Chief Expansion and Innovation Officer at Emerging Payments Association Asia, suggested future tokenization could include silver, rare stones, or cultural assets.
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