Kyrgyzstan orders liquidation of gold-backed USDKG issuer and Coin Nomad Exchange
In brief
- Cabinet Order No. 639-t, dated August 20, 2026, mandates liquidation of OJSC EVA and Coin Nomad.
- Coin Nomad, the first state-owned digital-asset exchange, entered voluntary liquidation after a September 3 vote.
- USDKG circulating supply was listed at about 50 million tokens, and the token still traded near $1.
- USDKG holders were told to email the issuer for fiat or USDT redemption. No deadline has been set.
What happens to USDKG holders
USDKG was designed as a token pegged 1:1 to the US dollar but backed by physical gold. It launched in November 2025 and was meant to support cross-border payments and raise Kyrgyzstan's profile in digital finance.
As of the liquidation announcement, roughly 50 million USDKG tokens were listed as circulating, Crypto Briefing reported, and the token was still trading close to $1 on various platforms.
Redemption is the open question.
Holders have been told to email the issuer and request redemption in fiat currency or USDT, per the same report. There's no redemption deadline, and detailed verification procedures haven't been laid out either.
The reserve data is old. Kreston Global initially verified USDKG's backing at about 376 kg of gold, worth approximately $50.3 million at the time (that check came at the start of the project, and it's the last verification cited). Crypto Briefing didn't cite any later check, so that figure shouldn't be read as a confirmation of what's in reserve today.
Coin Nomad's wind-down
Coin Nomad Exchange moved into voluntary liquidation following a shareholder vote on September 3, 2026, according to Crypto Briefing. Creditors had until around October 14, 2026, to file claims.
The sanctions question
On May 26, 2026, the UK sanctioned Virtual Asset Issuer, the stablecoin's original issuer, over suspected economic ties with Russia, as Crypto Briefing reported. Kyrgyz officials haven't attributed the shutdown to those sanctions. They've presented the liquidation as part of a broader effort to improve how the state manages its assets.
That's the official framing. Crypto Briefing also noted that the sanctions weren't directly cited as the reason for the company's operational problems.
Frequently asked questions
How can USDKG holders redeem their tokens after the liquidation order?
According to Crypto Briefing, holders have been told to email the issuer and request redemption in fiat currency or USDT. No redemption deadline has been specified, and detailed verification procedures have not been laid out.
What backs the USDKG stablecoin?
USDKG was designed as a token pegged 1:1 to the US dollar but backed by physical gold. Kreston Global initially verified reserves at about 376 kg of gold, worth approximately $50.3 million at the time. That verification dates from the start of the project, and it's the last one cited.
Did the UK sanctions cause the USDKG liquidation?
Kyrgyz officials have not attributed the shutdown to the UK sanctions on Virtual Asset Issuer, which were imposed on May 26, 2026, over suspected economic ties with Russia. Officials presented the liquidation as part of a broader effort to improve state asset management, Crypto Briefing reported.
