Kyrgyzstan Abandons Its Own Crypto Project, Orders Liquidation Less Than a Year After Launch

Kyrgyzstan has decided to shut down USDKG, a $50 million state-backed stablecoin project launched in November 2025, and ordered the liquidation of its issuer, EVA, and the state-owned crypto exchange Coin Nomad Exchange.

According to Wu Blockchain, the decision covers the gold-backed USDKG project and the two organizations associated with it. The project, designed for cross-border payments, is thus ending less than a year after its launch.

Liquidation Ordered for Gold-Backed Token and State-Owned Exchange

USDKG was pegged 1:1 to the US dollar, with its reserves backed by physical gold. The project’s primary use case was to facilitate payments between countries.

EVA, which has been ordered to liquidate, operated as the token’s issuer. Coin Nomad Exchange, also covered by the decision, was Kyrgyzstan’s first state-owned crypto exchange. The closure decision was therefore not limited to the token project; the issuer and the exchange were also included in the liquidation.

Issuer Was Added to Sanctions List in May

The United Kingdom sanctioned EVA in May 2026 over alleged support for Russia. The decision to end the project came months after those sanctions.