Bhutan’s TER Token Signals State Move Into RWA Finance

• Bhutan issues TER gold token on Solana, forming a state-backed real-world asset system.
• DK Bank manages custody and distribution, anchoring TER inside regulated frameworks.
• Strategy links tokenization with digital ID, reserves, payments, and sovereign crypto adoption.

Bhutan has issued the gold-backed TER token, a state-led step into real-world asset finance. The launch places Solana at the center of Bhutan’s digital infrastructure strategy, with the Kingdom using the network’s speed to attract global capital. The initiative involves Gelephu Mindfulness City, DK Bank, and Bhutan’s sovereign framework, forming a regulated process that aims to expand the country’s asset-backed digital ecosystem.

TER Token Anchors a State-Backed RWA Strategy

Bhutan’s decision to release TER as a sovereign-supported digital asset follows its broader plan to embed tokenized real-world assets inside national systems. This direction aligns with the Kingdom’s recent digital identity rollout and its earlier commitment to build blockchain tools into public services. 

The TER token introduces tokenized gold directly into state-linked financial infrastructure, an approach that few governments have attempted. The government structured TER around physical gold reserves held within DK Bank. 

This structure creates a direct link between a tangible asset and a blockchain ledger hosted on Solana. However, the project also serves a broader purpose as Bhutan seeks to position itself near global RWA hubs such as the UAE, Singapore, and Hong Kong.

The involvement of DK Bank creates a formal framework for managing issuance, custody, and redemption. The bank handles distribution in the first phase, allowing investors to acquire TER through traditional onboarding processes. This model offers a mix of regulated financial oversight and on-chain transparency, forming an early blueprint for sovereign RWA deployment.

Institutional Roles Drive System Design

DK Bank oversaw distribution, gold custody, and integration between banking systems and Solana. This alignment aims to reduce conversion friction and make the token more functional for investors who usually rely on conventional accounts. 

The project’s infrastructure was provided by Matrixdock, which previously received a Financial Services Licence from the Gelephu Mindfulness City Authority. Statements from city officials emphasized the regulatory foundation behind the asset. 

Jigdrel Singay from the Gelephu Mindfulness City Board said the project aimed to integrate digital innovation with national values, emphasizing transparency and long-term stewardship. His comments show Bhutan’s effort to design blockchain initiatives within supervised structures rather than allowing unregulated development.

Musheer Ahmed, founder of Finstep Asia, said the token’s initial use case remained limited inside the special administrative region. However, he noted its alignment with broader stable-value ecosystems as Bhutan explored asset-backed digital tools. This comment connects the project to earlier state actions, including reserve diversification and cross-border payment pilots.

Related: Bhutan Becomes First Nation to Use ETH for Digital Identity

Regional Developments 

Bhutan’s launch comes after Kyrgyzstan released its USDKG gold-backed token, issued with an initial valuation of over 50 million dollars. That rollout creates one of Central Asia’s early state-regulated digital asset systems. 

The back-to-back announcements from the two countries show a growing interest in using audited resources to anchor national digital tokens. Comments from Monica Jasuja of the Emerging Payments Association Asia referenced the possibility of nations expanding tokenization beyond gold. 

She said countries could eventually apply similar tools to silver, rare stones, or cultural assets. Her remarks show how Bhutan historically approached natural resources carefully and could digitize value without physical extraction.

Bhutan’s digital finance strategy extends beyond asset tokenization. Years of crypto activity influenced its current direction, beginning with Bitcoin mining operations launched in 2019. These operations use hydropower to maintain output and place the nation among the world’s larger sovereign Bitcoin holders. 

It holds 5,984 BTC, with Bitcoin Treasuries placing the United States at the top of the global rankings. The Kingdom broadened its reserve strategy in January when Gelephu Mindfulness City announced plans to hold Bitcoin, Ethereum, and BNB as part of its national portfolio. 

Two months later, Bhutan integrated its digital identity system with Ethereum, allowing population-scale identity verification through public blockchain infrastructure. The government expected over 800,000 citizens to access verifiable credentials by early 2026.

Further developments followed in May, when the country partnered with Binance Pay to support crypto payments across the tourism sector. The partnership enabled more than 100 cryptocurrencies across over 100 merchants, increasing the city’s digital payment coverage. 

Meanwhile, Bhutan’s TER rollout is tied to its digital identity systems, mining history, cross-border payment tools, and reserve diversification into a single direction. The project uses Solana to draw global capital while embedding tokenized gold inside regulated national systems. Bhutan’s coordinated strategy places the Kingdom among the few governments testing state-supervised real-world asset tokens at scale.