Kazakhstan Strengthens Its Position as a Digital Asset Hub with Tenge-Backed Stablecoin KZT1, Listed on AltanX Exchange
Kazakhstan is rapidly emerging as a new crypto hub in Central Asia, thanks to strong government support and the development of its legal and digital infrastructure. A key step in the country’s long-term strategy is the launch of the KZT1 stablecoin — the first digital currency pegged to the Kazakhstan tenge. The token is issued by FinTech company KazBlock and is fully compliant with local regulations under the supervision of the Kazakhstan Financial Services Authority.
Comprehensive Regulation Drives Innovation
Following instructions from the President of Kazakhstan, the country has adopted a new law that comprehensively regulates the digital asset market, including licensing of exchanges, token issuance procedures, and stablecoin-related activities. The new laws lay the foundation for a solid digital infrastructure, protect users, and promote transparency in the operations of blockchain companies.
A unique feature of the Kazakhstan model is the registration process for stablecoins and tokens under direct state control. Each token must be backed by fiat money, stored in a domestic bank, and must undergo periodic audits by an independent entity.
KZT1 is the first token issued under this new legal framework, and has already been successfully listed on AltanX — a regulated digital exchange in Kazakhstan. Listing on decentralized exchanges (DEX) is also planned in the next phase.
Investment opportunity: Up to 18% annual yield
The KZT1 stablecoin is fully backed by tenge, stored in a national bank, and audited quarterly. In addition to being a stable digital asset, KZT1 opens up opportunities for DeFi investment with interest rates up to 18% per annum — thanks to the mechanism of linking to the policy interest rate of the Central Bank of Kazakhstan and RWA (Real World Assets) investment strategies.
An alternative in the context of dollarization
The development of stablecoins has helped users avoid price fluctuations of traditional cryptocurrencies, trade efficiently and participate in decentralized financial protocols without relying on the USD. However, the current reality shows that:
- More than 95% of global stablecoin trading volume belongs to USDT and USDC.
- Stablecoins pegged to the euro, yen, or yuan remain at very low trading levels.
- Stablecoins from emerging markets are almost non-existent or have no significant liquidity.
This has limited the ability to diversify investment strategies, especially in carry trade or exchange rate hedging models.
KZT1 opens up new opportunities in the decentralized finance market
The launch of KZT1 contributes to solving the above gaps, by:
- Providing stable assets tied to emerging market currencies (tenge) in the DeFi space.
- Enabling the development of investment strategies in Kazakhstani assets and neighboring markets.
- Creating a platform for implementing derivatives to hedge exchange rate risks.
- Promoting capital flows from stablecoins into RWA assets, providing higher returns than traditional bank interest rates.
KZT1 Listing: A Gateway to Kazakhstan’s Digital Economy
The listing of KZT1 on AltanX is the first step in opening up liquidity, transparency, and institutional access to a digital asset that is deeply embedded in the Kazakh economy. At the same time, it is a clear demonstration of the potential for stablecoins to be applied legally and effectively in the local financial system, establishing Kazakhstan as a crypto innovation hub in the Eurasian region.
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