Kyrgyzstan is shutting down two pillars of its state-backed crypto push. On August 20, 2026, the country’s Cabinet of Ministers issued Order No. 639-t, which mandates the liquidation of OJSC EVA, the issuer of the gold-backed USDKG stablecoin, and OJSC Coin Nomad Exchange.
Coin Nomad was the nation’s first state-owned digital-asset exchange. USDKG launched in November 2025.
What the order actually does
The cabinet order targets both entities at once, removing the issuer and a piece of the domestic trading infrastructure together.
The move follows UK sanctions. On May 26, 2026, the UK sanctioned Virtual Asset Issuer, the stablecoin’s original issuer, over suspected economic ties with Russia.
Kyrgyz officials, however, have not pinned the shutdown on London. They have presented the liquidation as part of a broader effort to improve how the state manages its assets. The sanctions are not directly cited as the reason for the company’s operational problems.
Advertisement
Coin Nomad Exchange has moved into voluntary liquidation. That process followed a shareholder vote on September 3, 2026. Creditors have until around October 14, 2026, to file claims.
Where that leaves USDKG holders
As of the liquidation announcement, approximately 50 million USDKG tokens were listed as circulating. The token was still trading close to $1 on various platforms.
USDKG was designed as a dollar-pegged token, set at 1:1 with the US dollar, but backed by physical gold.
Kreston Global initially verified those reserves at about 376 kg of gold. That stash was worth approximately $50.3 million at the time of verification.
Holders have been told to email the issuer and request redemption in fiat currency or USDT. No redemption deadline has been specified. Detailed verification procedures have not been laid out either.
How Kyrgyzstan got here
USDKG was meant to support cross-border payments and raise Kyrgyzstan’s profile in digital finance. A state-linked, gold-backed stablecoin paired with a state-owned exchange was built under government ownership, offering both an asset and a venue.
The UK sanctions triggered operational challenges and set off a restructuring of the associated companies, which has now ended in liquidation orders for both the issuer and the exchange.
The sequence is compact. Launch in November 2025, sanctions on the original issuer in May 2026, a cabinet order in August, and a shareholder vote at Coin Nomad in early September.
What this means
For holders, the token is trading near $1, but a stablecoin’s value ultimately rests on whether redemptions actually get processed. Without a published deadline or a clear verification process, holders are relying on the issuer to honor requests as it winds down.
The last cited verification of gold reserves, about 376 kg worth approximately $50.3 million, came at the start of the project. Holders weighing whether to redeem or wait will likely want fresher confirmation of what backs the roughly 50 million tokens still outstanding.
The key dates to watch are the October 14, 2026 creditor deadline at Coin Nomad and any further guidance from EVA on how redemptions will be handled.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.