Kyrgyzstani som-pegged KGST stablecoin debuts on Binance

KGST, a stablecoin pegged to Kyrgyzstan’s local currency, the Kyrgyzstani som, has been listed on Binance.

Kyrgyzstan President Sadyr Japarov announced the development on Dec. 24, framing the listing as “landmark news.”

“It is especially encouraging that KGST has become the first stablecoin from the CIS countries to be listed on a global crypto platform,” Japarov said.

“I am confident that it will prove to be a stable and reliable asset, contributing to the wider use of the national currency in the digital environment, the development of cross-border payments, and the integration of our country into the global virtual asset ecosystem.”

KGST is a government initiative between the Kyrgyz authorities and Binance, and was first introduced in late October 2025 as a strategic tool to integrate blockchain technology into the country’s financial system.

It builds on an April partnership between Binance and the Kyrgyz National Agency for Investments, as a part of which the cryptocurrency exchange will offer infrastructure, education, and policy support to accelerate the country’s digital finance push.

Former Binance CEO Changpeng Zhao has also signed a Memorandum of Understanding with the government and currently serves as an adviser on digital assets for the country.

Commenting on the KGST listing, Zhao said it was the first nation-backed stablecoin to be listed on BNB Chain.

“Many more to come,” he added.

KGST is pegged 1:1 with the Kyrgyzstani som and registered as a digital asset. The launch comes after months of development, test deployments, and a smart contract audit back in late October 2025.

Kyrgyzstan has increasingly positioned itself as a forward-looking jurisdiction that is pro-digital assets, as it hopes to modernize its economy and strengthen its presence in the global fintech space.

Back in September, the country doubled down on its national digital finance agenda as the Kyrgyz parliament passed a comprehensive law “On Virtual Assets,” which introduced a regulatory framework for the sector, including licensing requirements, state-led mining operations, and the establishment of a state cryptocurrency reserve.

Besides KGST, Kyrgyzstan has developed a gold-backed stablecoin called USDKG, spearheaded by the OJSC Virtual Asset Issuer, a state-owned entity under the Ministry of Finance.

Unlike KGST, which is backed by fiat reserves, USDKG is pegged to the United States dollar and fully backed by physical gold. It has been launched on the Tron network with plans for future expansion to Ethereum.