KEY FACTS: Kazakhstan has partnered with Mastercard and the Solana blockchain to launch the "Digital Tenge," a stablecoin pegged to the Kazakhstani tenge (KZT), marking a pioneering integration of cryptocurrency into everyday payments. Set to streamline remittances, boost e-commerce, and enhance financial inclusion, the KZT-SOL stablecoin will leverage Solana's high-speed, low-cost network and Mastercard's secure payment infrastructure, with transactions enabled via a dedicated app and NFC-capable cards. Backed 1:1 by tenge reserves and monitored for fraud with advanced AI, the initiative begins pilot testing in October 2025 in Astana and Almaty, aiming for a nationwide rollout by Q2 2026.
Promotional image of the new tenge-backed stablecoin. Source: Intebix
Kazakhstan Launches "Digital Tenge" Stablecoin with Solana and Mastercard
Kazakhstan has announced a strategic partnership between global payments giant Mastercard, the high-speed Solana blockchain, and the country's central bank to launch a stablecoin pegged to the Kazakhstani tenge (KZT). Dubbed the "Digital Tenge," this initiative marks the first time a major international card network has collaborated directly with a sovereign nation to integrate cryptocurrency into everyday payments, potentially positioning the Central Asian republic as a global leader in digital finance innovation.
The announcement, made during a high-profile press conference in the futuristic capital of Astana, comes at a pivotal moment for Kazakhstan's economy. Long reliant on oil exports and commodity trading, the nation has been aggressively diversifying its financial landscape since lifting its ban on cryptocurrency mining in 2022. With this stablecoin project, officials aim to streamline cross-border remittances, boost e-commerce, and attract foreign investment in a market where digital adoption is rapidly increasing.
The roots of this ambitious project trace back to early 2024, when Kazakhstan began exploring central bank digital currencies (CBDCs) as part of its broader "Digital Kazakhstan 2025" initiative. Initial pilots focused on tokenized assets for agricultural commodities, but regulatory hurdles and scalability concerns stalled progress. Enter Mastercard and Solana, two heavyweights in the fintech and crypto spaces, whose combined expertise has breathed new life into the endeavor.
Mastercard, which processes over 100 billion transactions annually worldwide, brings its unparalleled infrastructure for secure payments. The company has been on a crypto tear in recent years, launching its Multi-Token Network in 2023 to enable seamless fiat-to-crypto conversions. Solana, known for its blistering transaction speeds—up to 65,000 per second—and low fees (often under $0.01), was selected after a rigorous evaluation of blockchains including Ethereum and Polygon. "Solana's proof-of-history consensus mechanism aligns perfectly with our need for real-time settlement in a volatile region," explained a NBK spokesperson during the reveal.
Under the agreement, the Digital Tenge stablecoin, provisionally named KZT-SOL, will be issued and backed 1:1 by tenge reserves held in NBK vaults. Users will be able to mint and redeem tokens via a dedicated app integrated with Mastercard's payment gateway, allowing instant conversions at point-of-sale terminals across Kazakhstan's 3.5 million square kilometers. Early estimates suggest the stablecoin could handle up to 10 million daily transactions within its first year, rivaling the volume of traditional mobile payments in the country.
Meanwhile, Mastercard had previously partnered with Circle for USDC integrations and backed the launch of Europe's first regulated euro-pegged token in 2024. For Solana, the deal bolsters its reputation beyond DeFi speculation, showcasing enterprise-grade applications in emerging markets. Solana's co-founder, Anatoly Yakovenko, expressing excitement about the partnership, stressed that blockchain can bridge the gap between legacy systems and the future of money
Kazakhstan is home to 19 million people, grappling with stark urban-rural divides. In cities like Almaty and Astana, fintech penetration is high—over 70% of adults use digital wallets—but in remote steppes and mountainous regions, access to banking remains limited. The Digital Tenge aims to change that by enabling offline-capable transactions via NFC-enabled Mastercard cards, even in areas with spotty internet.
Remittances, which totaled $2.3 billion in 2024 according to World Bank data, stand to benefit immensely. Migrant workers from Russia and Europe, who send home billions annually, often face fees exceeding 7% through traditional channels like Western Union. With the stablecoin, cross-border transfers could drop to fractions of a percent, settled in seconds on Solana's network.
Beyond remittances, the project holds promise for e-commerce and supply chain efficiency. Kazakhstan's "Belt and Road" position as a Eurasian trade hub means frequent dealings with China, Turkey, and the EU. Stablecoin payments could slash settlement times from days to minutes, reducing counterparty risks in volatile commodity markets. Analysts at PwC Kazakhstan project a 15% GDP boost over the next decade if adoption hits 50% of the population, driven by increased financial inclusion and reduced capital flight.
At the heart of the Digital Tenge lies Solana's robust architecture, customized for Kazakhstan's unique needs. Unlike Ethereum's occasional congestion, Solana's Turbine block propagation and Gulf Stream mempool ensure near-instant finality—critical for high-frequency micropayments in bazaars or online marketplaces. The stablecoin will leverage Solana's SPL token standard, with smart contracts audited by top firms like Trail of Bits.
Mastercard's role extends beyond issuance. Its Brighterion AI platform will monitor transactions for fraud in real-time, while the Crypto Secure Router facilitates interoperability with global networks. In a demo showcased at the press conference, a simulated purchase of traditional Kazakh horsemeat at a virtual market was completed in under two seconds, with the tenge peg holding steady amid simulated market fluctuations.
Pilot testing begins next month in Astana and Almaty, involving 50,000 users from banks like Halyk and Kaspi. Full rollout is slated for Q2 2026, pending parliamentary approval. The NBK has also earmarked $50 million from its innovation fund to subsidize wallet integrations for small businesses.
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