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Bhutan has launched a gold-backed cryptocurrency token on the Solana blockchain, marking the Himalayan kingdom’s latest move to position itself as an emerging crypto hub while leveraging its physical gold reserves to attract global investors.
The TER token, issued through Bhutan’s newly designated Gelephu Mindfulness City Special Administrative Region, represents physical gold held in custody and is managed by DK Bank, the country’s first licensed digital financial institution, according to an official statement released Thursday.
The TER gold-backed token is being issued through Gelephu Mindfulness City, Bhutan’s newly designated Special Administrative Region.
According to an official statement shared with Cryptopolitan, each TER unit corresponds to an equivalent deposit of gold securely held in custody — allowing investors to hold the precious metal in tokenized form on Solana.
DK Bank, the country’s first licensed digital financial institution, will manage custody and distribution responsibilities, serving as the official on-ramp during the initial rollout.
In its announcement, the Kingdom emphasized that the TER gold-backed token was designed to give global investors a modern, borderless means of accessing gold markets without compromising on the stability the commodity offers.
Lily Liu, President of the Solana Foundation, praised the partnership, saying:
“The Solana Foundation is honored that Gelephu Mindfulness City has chosen Solana as the blockchain infrastructure for TER… This collaboration shows how forward-looking nations can use Solana’s technology to bring high-quality, asset-backed digital products to a global audience while staying true to their cultural values and regulatory standards.”
The launch of the TER gold-backed token directly supports Bhutan’s long-term vision for Gelephu Mindfulness City — a jurisdiction designed to invite global crypto innovation, mirroring Hong Kong’s role as a sandbox for China.
Matrixdock, a prominent digital-asset financial services firm, is powering the tokenization framework under a Financial Services Licence issued by the Gelephu Mindfulness City Authority in September.
Jigdrel Singay, a board member of Gelephu Mindfulness City, said the new initiative displays Bhutan’s commitment to responsible digital innovation.
We are demonstrating how a crypto-friendly city can welcome responsible innovation while staying rooted in Bhutan’s values of transparency, sustainability, and long-term stewardship.
The TER gold-backed token adds another layer to Bhutan’s rapidly expanding crypto ambitions. The Kingdom has been building its holdings through Bitcoin mining — not market purchases — using its abundant hydropower resources since 2020.
Ujjwal Deep Dahal, CEO of Druk Holding & Investments (DHI), the country’s sovereign wealth fund, previously explained Bhutan’s mindset:
For Bhutan, it was quite obvious in a lot of ways. We kind of look at bitcoin as a store of value, similar to gold.
Yet even with these digital ventures, Bhutan continues struggling with economic slowdowns.
Tourism remains below pre-pandemic levels, and the Wall Street Journal recently reported a troubling trend: nearly 10% of citizens have left for better wages abroad.
Former Prime Minister Dr. Lotay Tshering delivered a blunt reality check, saying:
We are poor. Many people refer to Bhutan and Bhutanese as the happiest country in the world. We are not.
The launch of the TER gold-backed token follows a regional trend toward state-supervised digital gold initiatives.
Days earlier, Kyrgyzstan unveiled the USDKG, a gold-backed stablecoin pegged 1:1 to the U.S. dollar and backed by fully reserved gold deposits.
USDKG’s launch ceremony in Bishkek — attended by President Sadyr Japarov and senior officials — marks Central Asia’s push into asset-backed digital tokens, adding further legitimacy to the sector Bhutan is embracing.
