Tether has signed a Memorandum of Understanding (MoU) with the National Bank of Kazakhstan (NBK) and the Alatau City Authority (ACA) to explore stablecoins, asset tokenization, and decentralized finance, the company announced on October 7.
Under the MoU, the parties will prepare a concept and pilot proposal for a stablecoin pegged to Kazakhstan’s national currency, the tenge. The parties will also outline plans for an asset tokenization pilot in Alatau, a city operating under a special legal regime.
“The use cases for digital assets are evolving into real-life applications and, ultimately, into sovereign-level financial infrastructure. Kazakhstan is taking a deliberate, forward-looking approach by exploring asset tokenization and a strategic reserve framework,” said Paolo Ardoino, CEO of Tether.
The announcement sets out a development framework rather than confirming the launch of a tenge stablecoin.
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Tenge Stablecoin Proposal Takes Shape
As per the MoU, the parties will work to develop the infrastructure needed to support digital finance in Kazakhstan. This includes jointly studying international stablecoin issuance models to define potential use cases.
Their work will include assessing how to structure a tenge-linked stablecoin before preparing a pilot proposal.
“Collaboration with international technology leaders unlocks new opportunities for developing the digital infrastructure of Kazakhstan’s financial sector,” said Binur Zhalenov, Deputy Governor of the National Bank of the Republic of Kazakhstan.
The National Bank, Kazakhstan’s central bank, oversees monetary policy, payment systems, and financial stability. Alatau City Authority handles public administration and regulatory development within the city’s special jurisdiction.
Hadron Considered for Tokenization Pilot
The agreement also covers developing an asset tokenization framework, with Hadron by Tether among the technologies considered.
The parties will identify priority asset categories, design a conceptual tokenization model, and launch a pilot project within Alatau. The announcement does not identify the assets selected for tokenization.
To support these efforts, the parties will hold training programs, workshops, and seminars. These will cover the international stablecoin and digital asset market, issuance and reserve management models, and real-world asset tokenization using distributed ledger technology. These efforts will support National Bank specialists and relevant government agencies.
Next steps focus on designing the stablecoin and tokenization pilots and building technical and regulatory expertise.
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