Bhutan has pledged up to 10,000 bitcoin — roughly $1 billion — to back the development of Gelephu Mindfulness City, a new special economic zone the crown is promoting as a hub for sustainable industry and jobs.

Reports have disclosed the allocation was announced on national day and framed as a long-term commitment to fund the city’s growth rather than a quick selloff of reserves.

King Announces Bitcoin Allocation

According to King Jigme Khesar Namgyel Wangchuck, the pledge is meant “for our people, our youth, and our nation,” and aims to make every Bhutanese “a custodian, stakeholder, and beneficiary” of the project. The statement linked the Bitcoin allocation directly to the government’s plan to support economic opportunity inside Gelephu.

Bhutan and Cumberland DRW have signed a multi-year MoU to build a responsible digital asset ecosystem in Gelephu Mindfulness City, guided by the vision of His Majesty King Jigme Khesar Namgyel Wangchuck.

The partnership focuses on sustainable digital asset infrastructure,… pic.twitter.com/IJR7t3oHYl

— gmcbhutan (@gmcbhutan) December 15, 2025

Plan For Digital Reserves

Based on reports, officials say the 10,000 BTC will be held with an eye toward preserving value while generating returns through careful, risk-managed strategies — not by liquidating the holdings immediately.

The government has also signed a multi-year memorandum of understanding with market maker Cumberland DRW to help build digital-asset infrastructure and explore reserve management, stablecoins, and renewable energy-based mining inside the zone.

City Details And Goals

The Mindfulness City covers a very large area and has been pitched as an economic response to youth emigration, low birth rates, and lagging jobs.

Reports from earlier coverage describe the plan as a mix of green energy, tech, tourism, and regulated finance, with space set aside for vetted businesses and infrastructure projects such as an airport and dry port. the project’s promoters present it as a way to create higher-value work without abandoning Bhutan’s environmental and social aims.

Partnerships And Practical Steps

Officials say the partnership with Cumberland will focus on building market access and institutional-grade operations for the city’s crypto activities, including experimenting with a national stablecoin and sustainable mining tied to renewable power. Local leaders have sought legal and investment partners to give investors a clearer route into the zone’s projects.

Global Implications And Risks

Analysts note this is one of the larger sovereign moves toward using bitcoin as a development tool, and the pledge raises clear questions about governance, transparency, and the possible exposure of state coffers to crypto price swings.

Reports flag both opportunity and risk: the funds could underwrite major projects, but they also require careful oversight to avoid losses that would hurt public services.

Featured image from Visit Bhutan, chart from TradingView

Bhutan unveiled a national Bitcoin Development Pledge on Tuesday, committing up to 10,000 BTC, worth approximately $1 billion, to fund construction of Gelephu Mindfulness City without liquidating its sovereign digital asset reserves.

King Jigme Khesar Namgyel Wangchuck announced the allocation during his National Day Address, framing the commitment as a generational investment in youth employment and national prosperity tied to a new economic hub in southern Bhutan.

The pledge channels Bitcoin holdings into GMC development through mechanisms including collateralized lending, risk-managed yield strategies, and long-term holding approaches designed to preserve capital while financing infrastructure.

This development became possible due to a multi-year commitment to leverage Bitcoin’s compounding value over time, rather than converting reserves to cash.

Officials said the final implementation details are expected in the coming months, under governance frameworks that emphasize capital preservation, appropriate oversight, and transparency.

Sovereign Mining and Clean Energy Foundation

Bhutan ranks as the world’s fifth-largest government Bitcoin holder, having mined 13,011 BTC since 2021 using surplus hydroelectric power from Himalayan rivers.

The renewable energy-powered mining operation converts excess national grid capacity into digital assets without additional environmental impact, with crypto holdings now exceeding 11,286 BTC, valued at $1.28 billion, according to Bitbo data.

The Kingdom’s hydroelectric resources at times exceed domestic demand, enabling clean energy to be converted into long-term national assets through the national power generation utility.

This mining strategy accounts for over 25% of Bhutan’s GDP while maintaining environmental sustainability commitments central to the nation’s development philosophy, which balances economic progress with ecological stewardship.

The Kingdom established Green Digital Ltd through GMC to develop blockchain infrastructure and, recently, partnered with Cumberland DRW on digital asset trading frameworks, sustainable mining expansion, AI compute facilities, and national stablecoin development.

Gelay Jamtsho, Green Digital chairman, said the collaboration connects Bhutan’s renewable energy infrastructure with institutional-grade liquidity to support the country’s diversification agenda beyond traditional economic sectors.

Blockchain Integration Across National Systems

Beyond mining, Bhutan has deployed blockchain-based national identity systems serving 800,000 citizens on Ethereum after migrating from Polygon, with the transition completed in October, enabling Verifiable Credentials and digital signing capabilities.

Prime Minister Tshering Tobgay said leveraging Ethereum’s globally distributed network strengthens the security, transparency, and resilience of digital infrastructure serving nearly the entire population.

Bhutan has migrated its self-sovereign identity system to Ethereum, enabling 800K citizens to verify their identity on a public blockchain.#Bhutan #EthereumBlockchain #BhutanNDIhttps://t.co/GxMSpUcuN3

— Cryptonews.com (@cryptonews) October 14, 2025

Back in May, the Kingdom enabled crypto payments across tourism merchants through partnerships with DK Bank and Binance Pay, allowing visitors to use over 100 cryptocurrencies for everything from airline tickets and hotel stays to roadside fruit stalls.

Over 100 local merchants now accept digital assets, with Damcho Rinzin, tourism director, describing the system as advancing innovation and inclusion while supporting sustainable development goals.

Most recently, Bhutan launched TER, a Solana-based token backed by physical gold reserves distributed through DK Bank, positioning the nation among the few experimenting with state-backed tokenized assets.

Mindfulness City as Economic Catalyst

Gelephu Mindfulness City operates as a Special Administrative Region designed to attract international capital through regulatory clarity and modern financial connectivity while preserving cultural values.

King Jigme Khesar Namgyel Wangchuck framed GMC as a shared national enterprise in which citizens function as stakeholders, with new land policies ensuring that Bhutanese from all regions benefit from development proceeds, since most acreage remains state-owned.

“As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC,” the monarch said. “Think of GMC as a company and landowners as its shareholders.“

Market Outlook Supports Strategic Holding

Bitcoin traded at $87,274 today, up 1.9% in Asian hours as exchange reserves hit record lows and traders awaited US inflation data.

Major asset managers, including Bitwise and Grayscale, project that Bitcoin will exceed its previous all-time highs in 2026, despite traditional cycle theory predicting corrections, as institutional capital inflows through platforms like Morgan Stanley and Wells Fargo accelerate adoption.

Bitwise and Grayscale predict Bitcoin will break its four-year cycle and reach new all-time highs in 2026 driven by institutional capital and regulatory clarity.#Bitcoin #Bitwise #Grayscalehttps://t.co/mL6smmtfjl

— Cryptonews.com (@cryptonews) December 16, 2025

Bhutan’s pledge aligns with the growing sovereign and corporate adoption of digital assets, as global crypto ETPs have attracted $87 billion in net inflows since US products launched in January 2024.

The post Bhutan Pledges $1 Billion in Bitcoin to Build ‘Mindfulness City’ Without Selling Reserves appeared first on Cryptonews.

Bhutan is deepening its national blockchain push with the rollout of TER, a gold-backed digital token issued through Gelephu Mindfulness City and supported by the Kingdom’s sovereign framework.

The initiative positions Bhutan among the few nations experimenting with state-backed tokenized assets as it looks to merge traditional stores of value with modern financial infrastructure.

According to an announcement on Thursday, TER will run on Solana and be distributed and custodied by DK Bank, Bhutan’s first licensed digital bank.

Bhutan Opens Direct Bank Sales for Its Tokenized Gold Asset

In the first phase, investors will be able to acquire the token directly through the bank, creating a bridge between familiar gold-purchase processes and transparent, on-chain ownership.

Officials say the structure allows international buyers to access a tokenized form of gold that retains the mobility, settlement efficiency and global reach of digital assets.

TER is also a flagship project for Gelephu Mindfulness City, a special administrative zone designed to attract international capital and nurture Bhutan’s digital economy.

The city forms a key pillar of the Kingdom’s broader strategy to diversify its economy with technology-led initiatives that align with cultural and sustainability priorities.

Bhutan’s move comes shortly after Kyrgyzstan unveiled USDKG, a state-supervised gold-backed stablecoin, highlighting a growing trend in which smaller nations use blockchain to modernize the management of safe-haven assets.

Gelephu Mindfulness City is launching TER, the world’s first sovereign-backed, physical gold-backed digital token, on Dec 17, 2025. Built on Solana, issued via DK Bank, and powered by Matrixdock tech, TER brings Bhutan’s “Treasure” on-chain with full transparency.… pic.twitter.com/HmJVGh4qPB

— gmcbhutan (@gmcbhutan) December 11, 2025

Beyond its role as a new investment instrument, TER underscores Bhutan’s ambition to build a sovereign-aligned digital finance ecosystem rooted in audited reserves and institutional safeguards.

DK Bank’s regulated infrastructure is intended to give both domestic and global investors confidence in custody and compliance standards.

Solana’s high-speed, low-cost network provides the technical foundation for the token, with its performance and environmental efficiency cited as deciding factors.

The launch fits into a broader national program of digital experimentation. Bhutan has woven digital assets into its strategic reserves, deployed blockchain-based identity systems, enabled crypto-powered payments and leveraged hydropower to mine Bitcoin.

The introduction of TER marks the latest step in that evolution, giving Bhutan a distinctive position in the growing market for state-backed tokenized assets.

SC Ventures-Backed Libeara Launches Tokenized Gold Fund

On Monday, Libeara, the blockchain infrastructure platform backed by Standard Chartered’s venture arm SC Ventures, rolled out a new tokenized gold investment fund in Singapore, bringing one of the world’s oldest safe-haven assets onto digital rails.

The fund, launched in partnership with FundBridge Capital, allows professional investors to gain exposure to gold through blockchain-based tokens issued on Libeara’s ledger.

In a recent research, Web3 digital property firm Animoca Brands said that tokenization of RWAs could unlock a $400 trillion traditional finance market.

Animoca researchers Andrew Ho and Ming Ruan said the global market for private credit, treasury debt, commodities, stocks, alternative funds, and bonds represents a vast runway for growth.

“The estimated $400 trillion addressable TradFi market underscores the potential growth runway for RWA tokenization,” they wrote.

Meanwhile, according to the 2025 Skynet RWA Security Report, the market for tokenized RWAs could grow to $16 trillion by 2030.

The post Bhutan Rolls Out Solana-Powered Sovereign Gold Token TER appeared first on Cryptonews.