Bhutan Goes For Gold, Announces Sovereign-backed Rwa Token 2025

The Himalayan Kingdom mines Bitcoin, holds digital asset reserves, and has embraced blockchain technology to modernize its financial system.

Gelephu Mindfulness City (GMC), a special administrative zone of Bhutan, announced on Wednesday that it is launching a sovereign gold-backed digital token called TER.

The physical gold deposits will be custodied by DK Bank, a digital asset bank regulated by the government of Bhutan, and issued on the Solana Blockchain network, according to GMC’s announcement.

Matrixdock, a real-world asset tokenization (RWA) platform, is the technology partner responsible for tokenizing the real-world asset on the blockchain.

In the first phase, the tokens will be held in custody at the bank, with the exact rollout dates still unclear. “Purchasing TER tokens is structured to be as secure and familiar as acquiring physical gold from a major financial institution,” notes the announcement.

Cointelegraph reached out to DK Bank and representatives of GMC, but had not received a response at the time of publication.

The rollout of a sovereign-backed tokenized gold product is a hedge against currency inflation in the digital age and another step in the country’s blockchain adoption strategy, according to GMC’s announcement.

Related: Bhutan stakes $970K ETH via Figment in validator push

The government of Bhutan has embraced cryptocurrency and blockchain technology as a way to modernize the country’s payment system and boost the tourism sector, with the goal of becoming a regional cryptocurrency hub.

Bhutan has been mining Bitcoin (BTC) since 2019 with hydroelectric power, and the country holds nearly 6,000 BTC, valued at over $540 million at the time of this writing, according to Arkham Intelligence.

Source: CoinTelegraph