Kazakhstan Unveils Alem Fund to Build Crypto Reserve
- Kazakhstan launches digital assets reserve through the state-backed Alem Crypto Fund.
- AIFC provides legal protection and oversight for long-term digital asset holdings.
- BNB becomes the fund’s first asset through licensed support from Binance Kazakhstan.
Kazakhstan announced the launch of the Alem Crypto Fund in Astana, the country’s first government-backed initiative to establish a digital asset reserve. The fund, created by the Ministry of Artificial Intelligence and Digital Development, is managed by Qazaqstan Venture Group under the Astana International Financial Centre (AIFC). Its first investment, completed with Binance Kazakhstan as a strategic partner.
State-Backed Fund Targets Digital Reserves
According to the government announcement, the Alem Crypto Fund’s core objective is to build strategic reserves through long-term digital asset investments. Deputy Prime Minister Zhaslan Madiyev, who is also the minister for artificial intelligence and digital growth, described it as a move to make crypto finance institutional in Kazakhstan.
The choice to place the fund within the AIFC market shows the focus on compliance, regulatory oversight, and global standards. AIFC operates under English common law and provides banking access, legal protections, and tax clarity, which officials say is essential to attract institutional activity.
The framework also allows the fund to align with Kazakhstan’s broader vision of building a transparent digital outlook. The first allocation into BNB shows Kazakhstan’s collaboration with Binance Kazakhstan, which was selected as the fund’s execution and custody partner.
The partnership supports an existing relationship dating back to 2022, when Binance signed a memorandum of understanding with the Ministry of Digital Development to help design regulatory frameworks for crypto.
First Investment in BNB Supports Fund Strategy
BNB was chosen as the inaugural asset, with Binance Kazakhstan facilitating the transaction under its local license. BNB is the native token of the BNB Chain and is used for fees, governance, and transactions.
At press time, BNB market cap was at $142.14 billion, placing it among the largest digital assets by size and liquidity. Nurkhat Kushimov, General Manager of Binance Kazakhstan, said the decision to include BNB as the first asset shows trust in the exchange.
The fund’s leadership did not disclose the amount of BNB purchased or details about upcoming allocations. However, officials emphasized that the investment strategy would focus on steady accumulation rather than short-term positions.
Recently, Kazakhstan launched its tenge-backed stablecoin, KZTE, on the Solana blockchain in partnership with Mastercard, Intebix, and Eurasian Bank. The stablecoin initiative, announced in September, added weight to the country’s growing digital asset market.
Related: Kazakhstan Launches First Bitcoin Spot ETF in Central Asia
National Framework for Digital Assets
Kazakhstan’s adoption of the Alem Crypto Fund builds on several policy steps taken in recent years. In 2021, the country ranked second globally in Bitcoin mining hashrate, but unlicensed exchanges were shut down in 2024 as regulators sought to strengthen oversight.
President Kassym-Jomart Tokayev later called for a transparent legal structure around digital assets, instructing regulators to establish frameworks for state-backed reserves and licensed operations. Earlier this year, Kazakhstan unveiled “CryptoCity,” a trial zone allowing crypto payments, alongside plans to create a full digital asset market.
In June 2025, reports said the National Bank of Kazakhstan was evaluating proposals for a state-run crypto reserve supported by seized assets and state mining revenues. While the Alem Crypto Fund is not operated by the central bank, it shows a state-backed approach to diversifying financial reserves.
Moreover, nations have been moving to crypto for different reasons. El Salvador established a Bitcoin reserve in 2021, while Bhutan accumulated Bitcoin through state-backed mining operations as early as 2019. More recently, Brazil and Indonesia have explored similar moves. Kazakhstan’s entry shows its attempt to formalize reserves using a regulated hub in AIFC.
The combination of regulatory backing, institutional oversight, and a strategic partnership with Binance Kazakhstan makes the Alem Crypto Fund one of the first government-sponsored digital reserve initiatives in Central Asia.
Meanwhile, Kazakhstan’s launch of the Alem Crypto Fund indicates a structured effort to integrate crypto into state-backed financial reserves. The fund, under AIFC and managed by Qazaqstan Venture Group, begins with BNB as its first holding through Binance Kazakhstan. These steps show Kazakhstan’s broader strategy of building a regulated digital asset market while developing frameworks for long-term sovereign reserves.
