The President of Kyrgyzstan, Sadyr Japarov, has announced the introduction of a new stablecoin linked to the Kyrgyzstani som, the country’s fiat currency, on Binance, the world’s largest cryptocurrency exchange.

This news was made public after Japarov shared an X post dated Wednesday, December 24, noting that Kyrgyzstan’s KGST stablecoin, which is linked to the som, will enable the country to enhance cross-border payments and boost its relationship with the crypto industry.

CZ claims that several more stablecoins are anticipated to be listed on the exchange 

Following Japarov’s statement, the crypto community sparked excitement as the move marked a significant milestone in the industry. Responding to this enthusiasm in the cryptocurrency ecosystem, Changpeng Zhao, the founder and former CEO of Binance, popularly known as “CZ”, commented on a social media platform that several more stablecoins backed by governments are anticipated to be listed on the exchange.

Regarding Kyrgyzstan’s KGST stablecoin, sources close to the situation noted that Zhao initially began offering advice to Kyrgyzstan in April of this year. Notably, this move was part of a deal for technical backing and consulting services. 

After careful consideration, the Asian country decided to adopt CZ’s advice. This response indicated that Kyrgyzstan, with a population of approximately seven million individuals, is gradually shifting its attitude towards cryptocurrency, adopting a positive outlook on digital assets.

To demonstrate its heightened interest in the industry, reports dated September mentioned that Kyrgyzstan developed regulations aimed at establishing a state cryptocurrency reserve. Additionally, the nation expanded its digital asset sector.

Meanwhile, apart from Kyrgyzstan’s KGST stablecoin, it was confirmed that the nation also launched USDKG, a 1:1 USD-pegged, gold-backed stablecoin. Reports indicate that this token was made available on the Tron network, with an initial supply of approximately 50 million units. 

This upgrade drew the attention of several reports that sought an interview with officials from Kyrgyzstan. Respondingly, they hinted at their intentions to expand the stablecoin’s presence to the Ethereum blockchain. 

Several analysts also weighed in on the topic of discussion. They highlighted that although USD‑denominated stablecoins such as USDT, Tether’s stablecoin, and USDC, Circle’s stablecoin, contribute the highest market’s total value, several countries and economic teams have either introduced their stablecoins backed by their currencies or intend to do so.

To support this claim, sources noted that JPYC, a Japanese fintech firm, reportedly launched Japan’s first legally recognized stablecoin, pegged to the yen, in October. Moreover, it introduced a platform meant to provide this token.

This stablecoin, widely known as the JPYC stablecoin, is backed by bank deposits and Japanese government bonds. Its goal is to maintain a value equivalent to that of the yen.

Several companies demonstrate a commitment to establishing stablecoins 

SBI Holdings and the Startale Group signed a memorandum of understanding (MoU) in December of this year, aiming to establish a regulated stablecoin pegged to the yen. Sources close to the situation mentioned that this stablecoin will be provided and redeemed by Shinsei Trust & Banking. Notably, it is set to be launched in the second quarter of 2026.

Interestingly, another group of ten European banks emerged the same month and announced their plans to develop a euro-pegged stablecoin in the second half of 2026 via Qivalis, an Amsterdam-based firm. 

BNP Paribas alleged that this stablecoin would receive approval from the Dutch Central Bank and be created to comply with the EU’s Markets in Crypto-Assets regulations. 

In addition, the UAE telecom group e& signed a memorandum of understanding with Al Maryah Community Bank to explore the use of a dirham-pegged stablecoin specifically for consumer payments. This move was part of the UAE’s focus on regulated digital finance. 

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