Bhutan Unveils World’s First Sovereign Gold-Backed Digital Token on Solana

Bhutan has just pulled off another quiet revolution: the launch of TER, the planet’s first fully sovereign-branded, gold-backed digital token issued by a national government entity and running on the Solana blockchain.

Each TER token represents one gram of physical gold locked in audited vaults, with the Royal Government of Bhutan standing behind the asset reserves through its Gelephu Mindfulness City (GMC) Special Administrative Region. DK Bank — Bhutan’s pioneering fully digital bank regulated by the Royal Monetary Authority — serves as the exclusive distributor and institutional custodian, while tokenisation infrastructure is supplied by Matrixdock, a licensed platform under GMC’s regulatory framework.

The name “TER” is taken from the Dzongkha word for treasure, a deliberate nod to Bhutan’s cultural reverence for precious metals and natural wealth. Unlike many private stablecoins, TER carries the national crest and is marketed as “digital gold with a passport from the happiest country on earth”.

For international investors, TER delivers the centuries-old security of physical gold with the speed and transparency of blockchain. Tokens are portable across borders in seconds, settle 24/7, and are fully visible on-chain, while the underlying bullion never leaves Bhutanese custody unless redeemed.

“TER is not just another stablecoin,” explained Jigdrel Singay, Board Director of Gelephu Mindfulness City Authority. “It is sovereign gold, digitised. It marries the eternal store of value that humanity has trusted for 5,000 years with the efficiency and accessibility that only blockchain can provide — all while staying rooted in Bhutan’s values of transparency, sustainability and long-term stewardship.”

The launch is only the latest move in what analysts now call one of the most sophisticated national crypto strategies on earth.Since 2019, Bhutan has been mining Bitcoin using surplus hydroelectric power from its glacial rivers. Today the kingdom’s treasury holds 5,984 BTC — worth approximately $536 million — making it the seventh-largest sovereign Bitcoin holder globally, ahead of El Salvador and behind only nations like the United States, China, and the United Kingdom.

Bhutan’s journey into the blockchain era has been deliberate, disciplined, and astonishingly swift. It began quietly in 2019 when the kingdom switched on its first Bitcoin miners, powered exclusively by abundant Himalayan hydropower.

By 2023, the state-owned Druk Holding & Investments had silently amassed thousands of BTC, keeping the holdings off public balance sheets. January 2025 saw Gelephu Mindfulness City formally declare Bitcoin, Ethereum, and BNB as strategic national reserves. In May, Binance Pay went live across hotels, handicraft shops, and trekking agencies, turning tourists into everyday crypto users. October brought the historic migration of the entire National Digital Identity system to Ethereum—the first time any country entrusted its population registry to a public blockchain.

And now, in December 2025, Bhutan caps the year by launching TER, the world’s first sovereign gold-backed token on Solana. In just six years, the Land of the Thunder Dragon has gone from zero to becoming one of the most crypto-advanced nations on earth—without ever compromising its values or its environment.

By early 2026, more than 800,000 Bhutanese—from remote yak herders in the high Himalayas to monks in ancient monasteries—will carry tamper-proof blockchain credentials in their phones or wallets.

These credentials will seamlessly plug into smart contracts, cross-border services, DeFi platforms, and future government portals without middlemen or paper trails.“This isn’t just an upgrade; it’s a leap into true digital sovereignty for an entire population,” said Monica Jasuja, Chief Expansion and Innovation Officer at Emerging Payments Association Asia.

She added that, having started with gold-backed TER, Bhutan now has the rails to tokenise almost anything of national value in the years ahead: “Silver, rare Himalayan minerals, carbon credits from pristine forests, even intangible cultural heritage like traditional weaving patterns or sacred chants—Bhutan can bring its treasures on-chain while keeping them forever Bhutanese.”

Now, with TER, Bhutan has added real-world asset (RWA) tokenisation to the mix — and chosen gold as its first chapter.“Gold is only the beginning,” said Monica Jasuja, Chief Expansion and Innovation Officer at Emerging Payments Association Asia. “Chapter two could be silver, rare Himalayan minerals, or even tokenised carbon credits and cultural heritage assets.

Bhutan has always treated its environment as sacred. Tokenisation allows the kingdom to monetise its natural and cultural wealth without extraction or depletion.”

Bhutan is not alone in the sovereign stablecoin race. Kyrgyzstan recently launched USDKG, a state-backed gold stablecoin now valued at over $50 million. The Central African Republic has its Sango Coin, El Salvador has its Bitcoin reserves, and the Marshall Islands once attempted the Sovereign (SOV) currency.

Yet Bhutan stands out for several unique reasons: 100 % renewable-powered mining and token infrastructure. A Gross National Happiness framework that prioritises long-term societal well-being over short-term profit
A sovereign guarantee on reserves, not just a private issuer promise. A regulator (the GMC Authority) specifically designed to attract responsible blockchain innovation.

“Bhutan is proving that small nations can be disproportionately influential in the digital asset space,” said Musheer Ahmed, founder of Finstep Asia. “They are not trying to compete with Singapore or Dubai on trading volume. They are building a reputation for trust, clean energy, and thoughtful regulation — and that is extremely attractive to institutional players looking for safe on-ramps into real-world assets.”

A Token for a Mindful CityTER is initially targeted at residents and investors inside the Gelephu Mindfulness City — a planned 1,000 km² eco-metropolis at Bhutan’s southern border with India that is being designed by Bjarke Ingels Group and will serve as the kingdom’s innovation sandbox.

Future phases are expected to open the token to global retail and institutional buyers.“Think of Gelephu as Bhutan’s answer to Shenzhen or Dubai Internet City — but powered by hydropower and guided by Buddhist principles,” said one GMC official who spoke on background. “TER is the financial layer that lets the city plug directly into the global digital economy while keeping Bhutanese values intact.”

In a year when private stablecoin issuers have faced scandals and de-pegging events, Bhutan’s entry could not be more timely. By tying its token to physical gold under sovereign custody, the kingdom is sending a clear message: in an age of algorithmic coins and fractional-reserve concerns, sometimes the oldest form of money is still the most trusted — especially when it is wrapped in modern rails and backed by a nation that measures success in happiness, not just GDP.

As the sun sets over the snow-capped peaks that have guarded Bhutan for centuries, a new kind of treasure is now circulating at the speed of light — Bhutanese gold, digitised, sovereign, and proudly on-chain.

Naorem Mohen

Naorem Mohen is the Editor of Signpost News. Explore his views and opinion on X: @laimacha.