Bhutan Launches Gold-Backed TER Stablecoin On The Solana Network

Bhutan has announced plans to release a gold-backed digital token called TER on December 17. 

The project brings traditional gold reserves into a modern format through blockchain, and the government aims to offer a straightforward way for global investors to hold gold in digital form. 

TER Links Physical Gold With Digital Ownership

Bhutan backs each TER token with physical gold held inside the country’s reserves. The government designed the token to act like a digital receipt that represents real bullion. 

This way, buyers receive on-chain ownership while the assets stay under secure custody.

This approach offers quicker settlement than most traditional gold markets. Investors can also transfer TER across borders without the limits that usually surround physical gold. 

Interest in asset-backed tokens has grown over the last few years, and many buyers prefer instruments that connect blockchain features with familiar underlying assets. 

This means that TER is entering the market at a time when more countries and institutions are looking into such designs.

Bhutan Uses TER To Support Its Digital Economy Plan

As mentioned, Gelephu Mindfulness City will lead the rollout of TER. The zone forms part of a national plan to develop a modern financial and technology hub. 

Bhutan wants the region to attract responsible development, and a regulated digital product fits that goal.

According to the announcement, DK Bank will handle distribution and custody. The bank is Bhutan’s first licensed digital bank, and it offers a regulated channel for investors who want direct purchase options. 

This setup helps keep the structure stable and transparent. Also, buyers do not need to rely on unregulated exchanges or complex processes. They only need to work with DK Bank, which manages accounts and compliance.

Solana Supports TER’s High-Speed Structure

Bhutan selected the Solana blockchain for TER due to its fast performance and low fees. 

Solana can process a large number of transactions each second, which keeps transfers smooth even during busy periods.

Matrixdock also joined the project as a technical partner. The firm has experience building systems for RWAs and Its involvement brings more confidence in the structure.

Notably, the gold-backed token is not Bhutan’s first move in digital finance. The country already holds assets like BTC, ETH and BNB within its national reserves and these holdings show a willingness to diversify.

Regional Growth In Asset-Backed Tokens

Bhutan is not the only small nation considering this type of product. Kyrgyzstan recently launched USDKG, a gold-backed stablecoin pegged to the US dollar. 

Kyrgyzstan launches new USDKG stablecoin | source: X

The government issued USDKG under close supervision, with an initial supply of $50 million. This made it one of the first large state-managed digital asset projects in Central Asia.

In all, both TER and USDKG follow a pattern of countries using blockchain to connect physical reserves to users. 

Related Reading: Bhutan Expands Blockchain Adoption Through Ethereum Staking

Why Bhutan’s Move Matters

TER gives Bhutan a chance to participate in the global market in a more direct way. Gold holds long-term value across many economies and a tokenised version extends that function. 

The launch may also encourage other nations to invest in similar models. 

Overall, Bhutan still has more work to do as it builds its digital economy. Even so, TER stands as a clear step toward a future where physical assets and blockchain work perfectly together.