Bhutan Advances Its Crypto Investment Strategy With The Launch of Digitized Gold Tokens

• Bhutan extends its state-led cryptocurrency strategy with the launch of digitized gold. 

• The launch of sovereign token $TER, a physical gold-backed digital token, is part of the Kingdom of Bhutan’s innovative crypto strategy. 

• Digital tokens will be issued on Solana’s enterprise-grade blockchain. 

In an extension of its sovereign crypto investment strategy, Bhutan has announced the launch of digitized gold via Gelephu Mindfulness City (GMC), a Special Administrative Region in southern Bhutan. Named $TER, a term derived from the Dzongkha word for “Treasure”, the token is backed by physical gold issued with the sovereign backing of the Kingdom of Bhutan. This launch is in line with the Kingdom’s innovative country-wide crypto investments, as the country aims to drive forward cryptocurrency adoption across the country. Jigdrel Singay, a member of the Board of Directors of GMC, believes the launch of digitized gold will shape the future of tokenization of real-world assets (RWAs), welcoming a new wave of crypto investors in the country.

 In addition to opening up RWA investment in the country, the launch of $TER also aims to set a new standard for nations globally to adopt tokenization of assets, unlocking trillions of dollars in illiquid assets. 

This marks the first-of-its-kind digitized gold tokens with GMC aiming to become a “hub for mindful innovation and responsible technology”, as a statement on our desk reads. GMC will be the formal issuer of the sovereign-backed $TER token. It is expected to launch a new paradigm for asset-backed digital currencies with the support of a sovereign nation in bringing physical gold into the digital world in a transparent and verifiable way.

Furthermore, GMC partnered with DK Bank to ensure he highest level of security and regulated access to the digitized gold tokens, with the bank serving as the exclusive custodian and distributor of $TER tokens. DK Bank is Bhutan's first digital bank, regulated by the Royal Monetary Authority of Bhutan and the Gelephu Mindfulness City Authority.

$TER launches on Solana Enterprise-Grade Blockchain

According to the team’s statement, $TER will be issued on the Solana blockchain, leveraging the ultra-fast speeds, low transaction costs, and a small carbon footprint on the blockchain. Matrixdock has been appointed as the tokenization technology partner, leveraging its leadership in gold tokenization and institutional-grade infrastructure.

Lily Liu, President of Solana Foundation, welcomed the partnership with GMC and Matrixdock, praising the partners for choosing to launch $TER on Solana. In her praise for the Solana blockchain, Liu stated:

$TER is set to be secure and innovative, revolutionizing the physical gold market and allowing fractional ownership of gold. In the first phase rollout for $TER tokens, users will purchase the digitized gold directly through DK Bank. Once purchased, the tokens will be held securely in institutional custody. 

The launch of $TER revolutionizes and modernizes the purchasing of physical gold, providing an accessible gateway for domestic and international investors to jump into Bhutan’s crypto investment strategy. It provides a convenient way for investors to purchase and own physical gold, catering to the growing demand for gold, as the asset’s price continues to set all-time high prices. 

Leading In Crypto Investment Strategy

Bhutan continues its march towards becoming the leading country in crypto investment with the latest development. Notwithstanding, the country has also set up several investments into Bitcoin, as well as, engaging its citizens in education drives on blockchain and cryptocurrencies. Additionally, in October, the Kingdom of Bhutan became the first country to anchor its national digital identity system on the Ethereum blockchain, enabling nearly 800,000 Bhutanese citizens to verify their identities and securely access public services by 2026. Bhutan has also partnered with Binance Pay to allow seamless payments across thousands of merchant stores and is one of the leading countries in Bitcoin mining using renewable energy. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.