Bhutan Launches TER, a Sovereign Gold-Backed Digital Token Through Gelephu Mindfulness City

News

Dec 12, 2025
- by Ashley Chen
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Bhutan Launches TER, a Sovereign Gold-Backed Digital Token Through Gelephu Mindfulness City

Bhutan launches TER, a sovereign-backed, physical gold-backed digital token issued through Gelephu Mindfulness City, extending the Kingdom’s blockchain strategy and strengthening digital sovereignty.

Bhutan is launching TER, the world's first sovereign-backed, physical gold-backed digital token, through its Gelephu Mindfulness City (GMC) special administrative region.

Scheduled to debut on December 17, 2025, TER is a Solana-based token designed to bridge traditional asset ownership with regulated, transparent digital finance. DK Bank, Bhutan's first licensed digital bank, will exclusively handle distribution and custody, ensuring a secure and compliant framework.

The initiative is a cornerstone of Bhutan's broader national strategy to strengthen digital sovereignty, diversify its economy, and establish GMC as a hub for global investment and innovation. This move places Bhutan within a growing trend of smaller nations utilizing blockchain technology to link tangible assets like gold to regulated digital financial systems, creating a new model grounded in audited physical reserves.

Gelephu Mindfulness City artist impression by Bjarke Ingels Group (BIG)

Introduction to TER: The "Treasure" Token

Bhutan's TER initiative represents a significant step in the nation's digital evolution, combining a traditional store of value with a modern, sovereign-backed financial instrument.

• Name and Meaning: TER is named after the Dzongkha word for “Treasure,” reflecting Bhutan’s tradition of safeguarding precious assets while embracing digital advancement.

• Asset Backing: Each TER token is backed by physical gold, aiming to bring a tangible, real-world asset on-chain with full transparency.

• Issuing Authority: The token is issued by Gelephu Mindfulness City (GMC), a special administrative region established to foster a digitally focused future and attract global investment.

• Launch Date: The official debut is set for Bhutan's National Day, December 17, 2025.

Operational Framework and Key Partners

The TER ecosystem is built on a foundation of strategic partnerships and regulatory oversight, ensuring institutional-grade security and compliance.

Role	Entity	Description
Issuer	Gelephu Mindfulness City (GMC)	A special administrative region responsible for issuing TER and setting a new benchmark for asset-backed digital currencies.
Blockchain Platform	Solana	Selected for its enterprise-grade performance, high speed, low transaction costs, and minimal environmental impact.
Tokenization Technology	Matrixdock	Provides the technological solution for creating the gold-backed digital assets, leveraging its experience in the field.
Distributor & Custodian	DK Bank	As Bhutan's first licensed digital bank, it will serve as the exclusive channel for distribution and custody of TER tokens.
Regulatory Oversight	Royal Monetary Authority & GMC Authority	These bodies regulate DK Bank, ensuring all operations are secure and compliant with national financial standards.

In its initial phase, TER will be available for purchase directly through DK Bank, with the tokens held in institutional custody. This measured approach blends accessibility through familiar banking channels with robust regulatory control.

Strategic Vision and Objectives

The launch of TER is a core component of Bhutan's long-term economic and digital strategy, driven by several key objectives:

TER is explicitly designed to connect conventional physical asset ownership with the benefits of blockchain-based finance, including on-chain transparency and global transferability. The project aims to create a digital economy rooted in real assets and sovereign trust, aligning with Bhutan's principles of transparency, sustainability, and stewardship.

The initiative positions GMC as a financial innovator and supports its mission to attract global investment. Digital assets form a core part of GMC's financial reserves and innovation ecosystem. TER supports Bhutan's broader national effort to diversify its economy while remaining anchored in sustainability and long-term value.

Leadership Perspectives

Key leaders involved in the project have articulated a shared vision for TER's impact on Bhutan and the global digital asset landscape.

• Jigdrel Singay, GMC Board Director: "TER is a foundational step toward a values-driven digital economy rooted in real assets and sovereign trust. It demonstrates how innovation can flourish while honoring Bhutan’s principles of transparency, sustainability, and stewardship."

• Lily Liu, President of the Solana Foundation: "This collaboration shows how nations can use Solana’s energy-efficient technology to deliver high-quality, asset-backed digital products aligned with cultural values and regulatory standards."

• John Ge, CEO of Matrixport: "Our partnership with GMC reflects a shared commitment to building trusted, transparent, globally connected financial infrastructure."

TER in the Context of Bhutan's National Digital Strategy

The TER token is not an isolated initiative. It is a strategic milestone in Bhutan’s broader effort to redefine and strengthen its digital sovereignty.

It sits alongside a series of forward-looking measures. These include the integration of digital assets such as BTC, ETH and BNB into the strategic reserves of Gelephu Mindfulness City. Bhutan has also anchored its national digital identity system on the Ethereum blockchain, serving nearly 800,000 citizens.

In parallel, the country has adopted Binance Pay to enable cryptocurrency payments across merchants and the tourism sector. Bhutan has also been an early mover in Bitcoin mining, powered by its abundant renewable hydropower resources.

A Growing Global Trend

Bhutan's initiative is part of a wider, emerging trend of smaller nations leveraging blockchain technology to create regulated digital financial products backed by tangible assets. This offers an alternative model to other digital currencies, one grounded in audited, physical reserves.

A recent parallel example is Kyrgyzstan's announcement of USDKG, a gold-backed stablecoin pegged to the U.S. dollar with an initial issuance of $50 million. The launches of TER and USDKG signal a strategic shift by sovereign nations to connect real-world assets with the global digital economy.