The National Bank of Kazakhstan is partnering with Tether to investigate the possibility of a stablecoin linked to the national currency and the tokenization of real-world assets.
Exploring a Local Currency-Linked Stablecoin
The agreement between Kazakhstan's central bank, Tether, and the Alatau City Authority aims to evaluate stablecoins and decentralized finance applications. This collaboration was announced in a press release on Wednesday.
One of the primary objectives is to explore a stablecoin that would be pegged to the Kazakhstani tenge. The involved parties will research existing implementations of similar tokens, assess potential applications, and draft a proposal for a pilot project. It’s important to note that this agreement is exploratory and does not guarantee the issuance of a stablecoin.
Moreover, the initiative emphasizes the tokenization of assets. This process involves creating blockchain representations of various assets, which could facilitate the transfer, trading, or collateralization of items ranging from bonds to real estate through digital networks. The group will identify suitable asset types and plan a pilot project in Alatau, a city with a special legal framework aimed at fostering financial technology.
Tether's Hadron platform, which provides the necessary infrastructure for managing tokenized assets, is being considered for this project.
Known for issuing USDT, the largest U.S. dollar stablecoin with approximately $140 billion in circulation, Tether has also launched XAUT, a tokenized gold product valued at around $3.3 billion, backed by physical gold stored in Swiss vaults.
The company is diversifying its portfolio beyond stablecoins, investing in sectors such as energy, payment solutions, commodities, and tokenization technology to expand its financial and digital asset operations.
Kazakhstan is actively developing its digital asset regulations while ensuring strong involvement from its central bank in these efforts.
“As we pilot tokenization projects, we aim to thoroughly analyze global best practices in stablecoin issuance and the tokenization of real-world assets,” stated Binur Zhalenov, Deputy Governor of the National Bank of Kazakhstan.
Additionally, Tether and Kazakh authorities plan to conduct workshops focusing on stablecoin reserves, issuance, and tokenization for central bank personnel and other governmental bodies.