Bhutan has taken its latest step in blockchain adoption by launching TER, a sovereign-backed, gold-backed digital token on the Solana blockchain.
Key details from the announcement:
- Token Details: Each TER token represents physical gold held in custody and is issued by the Gelephu Mindfulness City (GMC), a Special Administrative Region in Bhutan.
- Purpose & Significance: While the initial uptake is expected to be limited to specific uses within the GMC, experts like Musheer Ahmed view it as a strong signal of the Kingdom's vision to align with stablecoin ecosystems, using gold as a neutral asset.
- Infrastructure:
- DK Bank, Bhutan's first regulated digital bank, is the exclusive distributor and custodian.
- Matrixdock provides the tokenization infrastructure.
- Vision: Jigdrel Singay of the GMC Board stated this move demonstrates how a crypto-friendly city can embrace responsible innovation while upholding Bhutan's values of transparency and sustainability.
- Next Steps: In the first phase, users will purchase TER directly through DK Bank, with the tokens held in institutional custody.
This launch is part of a multi-year effort that highlights Bhutan's significant embrace of digital assets and blockchain technology:
- Crypto Tourism: In May 2025, Bhutan partnered with Binance Pay and DK Bank to enable crypto payments for all aspects of its tourism ecosystem (flights, hotels, visa fees, etc.).
- Digital Identity: In October 2025, the kingdom integrated its National Digital Identity (NDI) platform with Ethereum, becoming the first country to anchor a population-scale identity system on a public network. Over 800,000 citizens are expected to have access to verifiable credentials by early 2026.
- Strategic Reserves: The GMC announced plans in January 2025 to hold Bitcoin, Ethereum, and BNB as strategic reserves.
- Bitcoin Mining: Bhutan has been mining Bitcoin since 2019, leveraging its abundant hydroelectric power. It currently holds 5,984 BTC (over $536 million), making it the seventh-largest sovereign holder globally.
Experts suggest this gold token is "chapter one," with potential future tokenization of other assets like silver, rare stones, or even cultural and environmental assets, allowing Bhutan to "monetize without extraction."
December 2025, Cryptoniteuae