Bhutan Launches Gold-Backed Digital Token ‘TER’ on Solana Network

Bhutan has introduced a gold-backed digital asset named TER, marking its latest move toward broader adoption of blockchain technology.

The token, issued by the Gelephu Mindfulness City (GMC) Special Administrative Region, is supported by physical gold and runs on the Solana network.

A Sovereign Token Anchored to Physical Gold

GMC developed TER as part of its broader plan to support regulated digital finance within the new economic zone. Specifically, officials confirmed that each token corresponds to gold held in secure custody.

Musheer Ahmed of Finstep Asia said the token may see limited initial use due to its city-focused design. He noted, however, that the project reflects Bhutan’s wider ambition to participate in stablecoin ecosystems while using gold as a neutral reserve asset.

Distribution and Technology Partners

To streamline the token’s rollout, Bhutan appointed DK Bank, its first regulated digital bank, as both distributor and custodian. Additionally, the institution confirmed that the token’s name draws from the Dzongkha word for “treasure,” emphasizing its asset-backed nature.

GMC has also partnered with Matrixdock, a digital asset platform licensed by the city authority in September, to deliver the tokenization infrastructure.

In a prepared statement, GMC board member Jigdrel Singay said the initiative demonstrates how a crypto-friendly city can support responsible innovation while upholding national principles of transparency and long-term stewardship.

Initially, users will acquire TER directly through DK Bank. Subsequently, the acquired assets will be held in institutional custody to ensure regulatory compliance and security.

Regional Momentum for Gold-Based Digital Assets

Bhutan’s initiative arrives amid growing interest in gold-backed digital currencies across the region. Recently, Kyrgyzstan introduced USDKG, a gold-backed stablecoin valued at over $50 million and secured by the country’s official reserves.

This trend has prompted broader conversations about the next phase of tokenization. Monica Jasuja of the Emerging Payments Association Asia said gold may be only the starting point, suggesting that future digital assets could include other precious materials or culturally significant resources.

She added that Bhutan’s approach remains consistent with its long-standing commitment to protecting natural assets. Simultaneously, it underscores the country’s emphasis on pursuing non-extractive forms of value creation.

A Strategy Years in the Making

The introduction of TER builds on Bhutan’s multi-year pursuit of blockchain technologies. The country began its digital-asset journey in 2019 with Bitcoin mining operations powered by hydroelectricity, a plentiful national resource.

Since then, Bhutan has accumulated 5,984 BTC, according to Arkham Intelligence. This holding places the kingdom among the world’s top sovereign Bitcoin owners. For context, Bitcoin Treasuries lists the United States at the top with more than 328,000 BTC.

Expanding Its Digital Financial Ecosystem

GMC’s broader digital strategy continues to evolve. For instance, in January, the city announced plans to include Bitcoin, Ethereum, and Binance’s BNB in its strategic reserves, selecting them for their high liquidity and strong market presence.

Building on that momentum, Bhutan partnered with Binance Pay in May to enable cryptocurrency payments across its tourism sector. The system supports over 100 digital currencies and is already accepted by more than 100 local merchants, strengthening the country’s digital commerce framework.

Two months before the TER launch, Bhutan integrated its National Digital Identity system with Ethereum. At the time, officials noted that the country became the first to anchor a population-scale identity platform on a public blockchain. 

Ultimately, more than 800,000 citizens are expected to receive verifiable digital credentials by early 2026.