Kazakhstan President Kassym-Jomart Tokayev has announced the creation of a National Digital Asset Fund and confirmed plans for “CryptoCity” in Alatau, where residents will be able to make everyday payments using cryptocurrencies.

In his annual address to the nation, President Tokayev outlined a bold vision for the country’s financial future. A central pillar of this vision is the establishment of the National Digital Asset Fund, to be administered by the Investment Corporation of the National Bank.

This state-backed fund will build a strategic reserve of digital assets, focusing on high-potential cryptocurrencies poised for significant growth.

Tokayev emphasized that this reserve will be part of Kazakhstan’s new digital financial system. It aims not only to bring bank money back into the economy but also to increase long-term returns.

Tokayev Pushes for Digital Asset Legislation

To support these initiatives, Tokayev instructed the Agency for Regulation and Development of the Financial Market to prepare a comprehensive law on digital assets. The law is expected to be ready by 2026, paving the way for the regulation of digital assets. It will establish a legal framework for the use, investment, and oversight of cryptocurrency in the country.

According to the president, having a clear legal foundation is critical to building trust among investors. It also ensures that Kazakhstan can compete in the rapidly growing global digital asset market.

Kazakhstan Advances with CryptoCity in Alatau

Building on the national fund and the upcoming legal framework, Tokayev confirmed the creation of “CryptoCity” in Alatau, a town in southeastern Kazakhstan. The project, first hinted at earlier this year, has now been formally included in the government’s roadmap. It is envisioned as a showcase for how digital assets can transform daily life.

The government plans to transform Alatau into the region’s first fully digitalized city, enabling residents and businesses to make routine payments with cryptocurrency. From groceries to essential services, transactions will rely on digital assets.

“This city will represent the future of Kazakhstan,” Tokayev declared. “It must combine advanced technology with the most favorable living conditions.” 

By moving forward with CryptoCity, Kazakhstan demonstrates its intent to evolve from a mining hub into a global leader in digital adoption.

Global Trend Toward State-Backed Crypto Reserves

Kazakhstan’s move aligns with global trends, as several countries are exploring the creation of national cryptocurrency reserves. The United States, under an executive order signed by President Donald Trump, has advanced plans to hold Bitcoin and other digital assets as part of its strategic reserves. Similarly, Brazil and Indonesia are considering comparable measures.

For Kazakhstan, which already holds a strong position in the cryptocurrency industry, establishing a strategic digital asset reserve could strengthen its economic resilience and global standing.

Strength in Bitcoin Mining, But With Challenges

Kazakhstan is no stranger to cryptocurrency. Over the past few years, the country has emerged as a major hub for Bitcoin mining. At its peak, it contributed roughly 13% of the global Bitcoin hashrate.

The country’s relatively low electricity costs and favorable regulations have attracted both local and foreign miners. However, this rapid growth has not come without problems. Authorities have struggled with illegal mining operations that consume vast amounts of power, putting stress on the national grid.

Tokayev’s new initiatives indicate a shift from being solely a mining powerhouse. They point toward a broader vision of a comprehensive digital asset economy with stronger regulation and oversight.

Nasdaq is seeking regulatory approval to trade tokenized securities, a move that could bridge the Wall Street and blockchain.

The proposal, filed with the SEC, would allow stocks and exchange-traded products to be listed in either traditional or tokenized form. If granted, it would be the first time investors could trade blockchain-settled securities on a major American exchange.

How Tokenization Fits into Wall Street

Tokenization is the process of converting financial assets, such as stocks, bonds, or real estate, into digital tokens. These tokens can then be traded on blockchain systems, often promising faster settlement and improved transparency.

Nasdaq argues that tokenization can work within existing frameworks without undermining investor protections. 

In its filing, the exchange stressed that tokenized instruments must carry the same rights and privileges as traditional securities. If these conditions are met, tokenized and traditional assets would share the same order book and follow identical execution rules. If not, Nasdaq will treat tokenized assets as distinct instruments with separate trading conditions.

Regulatory Shifts Supporting Change

The proposal comes as the SEC reviews its regulatory stance on cryptocurrencies and tokenized products. Chair Paul Atkins has been leading an effort to simplify crypto-related rules that Wall Street considered too restrictive.

Last week, the SEC listed updates to its rulemaking agenda, signaling possible amendments that would allow crypto trading on national exchanges. This regulatory shift is seen as an opportunity for traditional financial institutions to expand into blockchain-based settlement.

Rising Demand and Global Momentum

Investor appetite for tokenized products is growing worldwide. Proponents say the technology can unlock liquidity, reduce settlement times, and lower transaction costs.

Coinbase, America’s largest cryptocurrency exchange, has already asked the SEC for permission to offer tokenized equities to its customers.

Major banks, including Bank of America and Citi, are considering the launch of tokenized assets, such as stablecoins and other blockchain-based financial products.

Globally, tokenized securities have already begun trading on several European platforms. However, Nasdaq has criticized these systems for offering exposure to U.S. equities without granting investors actual share ownership.

Regulatory Concerns and Safeguards

While enthusiasm is high, regulators remain cautious about potential risks. Some warn that tokenization could add new vulnerabilities if oversight is weak. In July, SEC Commissioner Hester Peirce, known for supporting crypto innovation, clarified that tokenized securities must still adhere to existing securities laws. 

Nasdaq aligned its proposal with that view, stressing that any integration of blockchain will occur inside the national market system. The exchange also noted that avoiding regulatory protections is not in the best interests of investors.

Nasdaq’s filing states that tokenized securities must provide the same material rights as traditional securities. This includes voting rights, dividend entitlements, and legal protections.

Without these guarantees, tokenized assets would not be considered equivalent and would trade separately. The approach is designed to ensure tokenization enhances efficiency without weakening investor safeguards.

Timeline for Implementation

If regulators approve the plan, the first tokenized securities could trade in the United States by late 2026.

Nasdaq stated that the rollout depends on the Depository Trust Company, which is developing the necessary clearing infrastructure. Once operational, investors could buy shares that settle directly on the blockchain, without changing how orders are routed or reported.

The development would represent a landmark in modernizing U.S. markets, blending traditional protections with digital innovation.