Bhutan is making a bold step into the future of finance by launching a sovereign-backed Real World Asset (RWA) token called TER. The Kingdom is tokenizing its gold reserves on the Solana blockchain, merging traditional value storage with cutting-edge technology.
TER, which means "treasure" in Dzongkha, Bhutan's national language, is a digital representation of physical gold, with each token collateralized by the country's national gold reserves. This ensures security and transparency for investors. The initiative aligns with Bhutan's broader digital economic strategy, which includes blockchain-based national identity systems and crypto-powered payment solutions.
The move establishes Bhutan as an emerging player in the RWA movement. Other countries, such as Kyrgyzstan, have also tokenized their currencies or gold reserves. Bhutan's embrace of blockchain technology reflects a balance between cultural preservation and technological advancement. Jigdrel Singay, a board member of Gelephu Mindfulness City (GMC), believes the launch of digitized gold will welcome a new wave of crypto investors and shape the future of RWA tokenization.
The TER token operates on the Solana blockchain, known for its high-speed transactions, low costs, and minimal environmental impact, making it suitable for sovereign-backed assets. DK Bank, Bhutan's first digital bank, will issue, distribute, and store the tokens. Matrixdock, a blockchain technology provider, played a role in tokenizing Bhutan's gold reserves, enabling integration with DK Bank's custodial services.
The launch of TER signifies a move towards a contemporary, open, and global digital economy. It also aims to set a standard for other nations to adopt asset tokenization, potentially unlocking trillions of dollars in illiquid assets. According to a report from Animoca Brands, RWA tokenization could unlock a $400 trillion market in traditional finance. The 2025 Skynet RWA Security report projects a potential value of $16 trillion for the industry in 2030.
Gelephu Mindfulness City (GMC), a special administrative region in Bhutan, is spearheading the initiative, with Matrixdock as the tokenization technology partner for TER. GMC aims to become a hub for mindful innovation and responsible technology, bridging tradition and cutting-edge tech. The GMC Authority granted Matrixdock's parent company, Matrixport, a financial services license.
Monica Jasuja, Chief Expansion and Innovation Officer at Emerging Payments Association Asia, believes that the TER issuance is only the beginning, and that GMC may issue digital tokens backed by silver and other assets in the future.
Bhutan's sovereign wealth fund, Druk Holding & Investments, has previously shown interest in cryptocurrency, including being an institutional customer of Celsius.
