Bhutan Launches Gold-Backed Digital Token TER On The Solana Blockchain

Bhutan is advancing its national blockchain strategy with the introduction of TER, a sovereign token backed by gold and built on the Solana blockchain. The token is issued by the Gelephu Mindfulness City (GMC) Special Administrative Region with the aim of bridging traditional stores of value with blockchain-based finance.

The issuance and custody of the token will be managed by DK Bank, which is recognized as Bhutan’s first digital bank regulated by the Royal Monetary Authority. In the initial phase of the token’s rollout, users will have the ability to purchase TER directly through DK Bank.

Jigdrel Singay, a GMC board director, stated, "By issuing gold-backed digital tokens with sovereign branding, we are demonstrating how a crypto-friendly city can welcome responsible innovation while staying rooted in Bhutan’s values of transparency, sustainability, and long-term stewardship."

Matrixdock, a digital asset financial services platform that obtained a Financial Services License from the Gelephu Mindfulness City Authority in September, will provide the tokenization infrastructure for this initiative.

Musheer Ahmed, founder and managing director of Finstep Asia, anticipates that the token’s uptake will be constrained due to its specific use case within the GMC. Nonetheless, Ahmed believes the token’s launch signifies Bhutan’s strategic intent to integrate with stablecoin ecosystems.

Bhutan Continues To Build On Its National Blockchain Strategy

The introduction of the TER token is an extension of Bhutan’s ongoing national blockchain strategy, which commenced in 2019 with the nation’s launch of its own Bitcoin mining operations, leveraging its abundant hydroelectric resources.

Data from Bitcoin Treasuries indicates that Bhutan has accumulated 5,984 BTC, a holding valued at over $541 million at current market prices.

Bhutan has intensified its blockchain initiatives in 2025. In May, the government implemented a national-level crypto payment system, enabling tourists to pay for services such as visas and travel, as well as conduct local purchases using various digital assets.

This crypto payment system has experienced significant adoption, with more than 1,000 vendors now participating in the network.

Furthermore, in October, Bhutan began the process of migrating its national digital identity system to the Ethereum blockchain, marking a global first for self-sovereign digital identities.

The nation has also deepened its blockchain integration through an Ethereum staking initiative this year.

Digital Assets Designed To Maintain Value Surge

The launch of the TER token coincides with a global surge in digital assets designed to maintain stable and predictable value. While TER is backed by gold rather than a fiat currency, it aligns with a broader trend toward tokenized stores of value and stablecoins.

Momentum in this sector received a significant boost in July when US President Donald Trump signed the GENIUS Act into law, providing regulatory clarity for stablecoins and encouraging major institutions in the US to enter the market.

Consequently, the total stablecoin market capitalization surpassed $300 billion this year, according to DefiLlama, with Tether’s USDT and Circle’s USDC continuing to lead the market.

Gold-backed digital tokens have also seen increasing popularity, partly driven by rising commodity prices. The tokenized gold market is now valued at over $4.1 billion, according to CoinGecko, with Tether Gold holding the largest market share.