Bhutan is advancing its digital economy by placing portions of its traditional reserves on blockchain infrastructure. As tokenized real-world assets gain popularity, the country is securing an early position. The introduction of TER, a gold-backed token from Gelephu Mindfulness City (GMC), strengthens Bhutan’s ongoing blockchain plans.
In brief
- Bhutan introduces TER, a gold-backed token issued on Solana and secured by DK Bank under sovereign supervision.
- Distribution begins with TER held in custody, providing a familiar process similar to purchasing physical gold from a bank.
- Digital initiatives include BTC mining, large crypto reserves, and a national digital identity system on Ethereum.
- Tourism and payments are growing as merchants adopt Binance Pay and Bhutan expands its activity on blockchain networks.
Bhutanese officials promote TER as part of long-term digital financial plan
GMC says TER will be issued on the Solana blockchain, with DK Bank serving as custodian for the physical gold. DK Bank is a regulated digital asset bank under the government of Bhutan, giving official support to the project. Technology support comes from Matrixdock, which tokenizes the underlying gold and connects it to blockchain infrastructure.
In the first phase of deployment, TER will remain in custody at DK Bank while the city finalizes distribution plans. According to GMC, the purchase of TER will follow a process similar to that of the purchase of physical gold by a traditional financial institution. This model aims to provide investors with a familiar entry into digital assets backed by real value.
GMC board member Jigdrel Singay said the launch fits with the city's mission to build a value-driven digital economy. He described TER as a way to connect Bhutan’s heritage with new technology while positioning Gelephu as a center for conscious innovation. His words place TER in a long-term plan for transparent and stable digital finance.
Digital identity system on Ethereum reaches 800,000 citizens
Bhutan sees the gold-backed token as a hedge against inflation and a step forward in its national blockchain roadmap. The country has been active in digital assets for several years and now stands out among the first sovereigns to adopt these technologies.
Bhutan's broader digital plan includes several milestones:
- Hydroelectric powered Bitcoin mining since 2019.
- Nearly 6,000 BTC in national reserves, according to Arkham Intelligence.
- A digital asset reserve holding BTC, Ether, memecoins and other altcoins.
- Using blockchain to support economic development and future urban projects.
- Expansion into tokenized assets via global partnerships.
Crypto activity also supports tourism and payment modernization in Bhutan. Officials see blockchain systems as a way to strengthen digital control and expand access to public services. Nearly 800,000 citizens use a national digital identity system built on Ethereum to verify their identity and access online platforms.
Local merchants and tourism operators accept Binance Pay, increasing the use of crypto in everyday transactions. Bhutan also staked 320 ETH, worth around $970,000, through Figment, strengthening its presence in institutional blockchain networks.
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