- Bhutan has launched a new gold-backed digital token, TER.
- DK Bank will be the digital token’s exclusive distributor.
- GMC-licensed Matrixdock will provide infrastructure for the new token.
The government of Bhutan, a Himalayan kingdom, has launched TER, a gold-backed digital token on the Solana blockchain that represents allocated physical gold held in custody. The launch fits into Bhutan’s broader effort to use blockchain inside its financial strategy.
Bhutan uses TER to test gold-backed stable value tokens
According to reports, Gelephu Mindfulness City (GMC), a designated Special Administrative Region in Bhutan, issued TER tokens in a process designed for limited uptake, considering the intention for the digital asset to be used for specific purposes. Meanwhile, Musheer Ahmed, founder and managing director of Finstep Asia, stated that GMC’s TER issuance also signals the Bhutan kingdom’s vision to align with stablecoin ecosystems while choosing Gold as a neutral asset to underpin the token.
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In the meantime, DK Bank, Bhutan’s first digital bank regulated by the Royal Monetary Authority, will be the exclusive distributor and custodian for the newly issued token, and Matrixdock, a GMC-licensed financial services platform, will provide the necessary tokenization infrastructure.
Welcoming Responsible Innovation
Speaking about the development, Jigdrel Singay, a member of GMC’s Board of Directors, noted that the region’s TER issuance highlights how a crypto-friendly city can welcome responsible innovation. He further stated that the event connotes GMC’s commitment to stay rooted in Bhutan’s values of transparency, sustainability, and long-term stewardship.
As mentioned above, DK Bank is the TER token’s exclusive distributor, and users can purchase the digital asset via the bank in the first phase, with the tokens held in institutional custody. Meanwhile, it is worth noting that Bhutan’s digital token adventure comes after Kyrgyzstan issued USDKG as a gold-backed national stablecoin, which is valued at over $50 million and backed by the state’s gold reserves.
More Issuance to Follow for Bhutan
Monica Jasuja, Chief Expansion and Innovation Officer at Emerging Payments Association Asia, believes the GMC’s TER issuance is the initial stage of an unfolding process. Jasuja believes the region will move a step further to issue digital tokens backed by silver, rare stones, and tokenized cultural or environmental assets.
Bhutan is renowned for its crypto-friendly approach, highlighted by a substantial Bitcoin reserve. At the time of writing, data from Arkham Intelligence revealed that the region held 5,984 BTC worth over $540 million.
Related: Ethereum Price Prediction: Bhutan Adopts Ethereum For National Digital ID
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Source: https://coinedition.com/bhutan-gold-backed-ter-token-launches-on-solana/
