Published
08/20/2026, 15:46The market for stablecoins pegged to the national currency is developing in Kyrgyzstan. One such instrument is KGST — a digital asset whose value is pegged to the Kyrgyz KGS at a ratio of 1:1.
Local stablecoins help to reduce the number of intermediate steps when switching between traditional money and digital assets. Users do not need to first convert KGS into a dollar-pegged stablecoin in order to subsequently trade in crypto-assets.
According to Binance Research, the aggregate trading volume of local stablecoins, including KGST, has exceeded $5 billion since 2025. This shows that stablecoins are gradually being used not only for trading but also as a bridge between the traditional financial system and digital assets.
On a global scale, the role of stablecoins is also growing. According to a study by Binance Research, around 30 per cent of users now hold more than half of their crypto portfolio in stablecoins. In 2020, this figure stood at around 4 per cent.
