Kazakhstan Launches First National Crypto Reserve with Binance

Kazakhstan has created its first national crypto reserve, selecting Binance’s BNB token as the inaugural asset in a landmark step for its digital finance strategy.

Kazakhstan has officially entered the sovereign crypto reserve space, launching the Alem Crypto Fund with Binance as a strategic partner and BNB as its first holding. The move places the Central Asian nation among the first countries to formally integrate cryptocurrency into state-level reserves and long-term financial planning.

Alem Crypto Fund: A National First

The Alem Crypto Fund was established by the Ministry of Artificial Intelligence and Digital Development and is managed by Qazaqstan Venture Group. The initiative is embedded within the Astana International Financial Centre (AIFC), Kazakhstan’s flagship financial hub for fintech and innovation.

Deputy Prime Minister Zhaslan Madiyev said the fund is designed to become “a reliable instrument for major investors and a key foundation for digital state reserves.” He emphasized that the initiative could eventually evolve into a vehicle for state-level savings, putting Kazakhstan on a path similar to sovereign wealth funds that diversify into digital assets.

BNB, with a market capitalization of over $139 billion, was chosen as the starting point. As the native token of BNB Chain, it plays a central role in transaction settlement, fee payments, and governance across the network. Nurkhat Kushimov, General Manager of Binance Kazakhstan, framed the selection as “a new chapter for institutional recognition of cryptocurrencies in Kazakhstan.”

A Presidential Push Toward Digital Finance

The project follows President Kassym-Jomart Tokayev’s directive to build a state-backed crypto reserve fund through the National Bank’s Investment Corporation. Tokayev has pledged up to $1 billion in funding for initiatives that drive high-tech and fintech development.

Alongside crypto reserves, the president announced plans to expand the digital tenge, integrate it into national and local budgets, and establish an anti-fraud cybersecurity center to safeguard digital finance. This aligns with Kazakhstan’s broader ambition to position itself as a fintech hub in Eurasia.

Regulatory Milestones: Stablecoins and ETFs

Kazakhstan has already introduced several landmark policies in 2025:

• Stablecoin payments were approved for regulatory fees during Astana Finance Days, allowing participants in the AIFC to settle costs using USD-pegged tokens through licensed service providers.
• Bybit became the first exchange to sign a multilateral memorandum with the Astana Financial Services Authority (AFSA), cementing the framework for digital asset payments. AFSA CEO Evgeniya Bogdanova described the model as “a first-of-its-kind regulatory framework for payments in stablecoins in the region.”
• The Fonte Bitcoin ETF, launched in August on the Astana International Exchange, became Central Asia’s first spot Bitcoin exchange-traded fund. The physically-backed ETF is managed by Fonte Capital with BitGo Trust providing custody.

National Bank Chairman Timur Suleimenov added that parts of Kazakhstan’s gold and foreign exchange reserves, as well as National Fund assets, may be allocated into crypto-related investments. However, he cautioned that volatility remains a concern, stressing that “there is no need to rush here.”

Building the Digital Tenge

Kazakhstan has also completed pilot testing of its central bank digital currency. The digital tenge is scheduled for full rollout by the end of 2025 and will operate alongside cash and traditional non-cash payments. This will give Kazakhstan three parallel forms of money, potentially boosting efficiency and reducing reliance on legacy banking infrastructure.

From Mining Boom to CryptoCity

Kazakhstan’s crypto engagement began in earnest after China’s 2021 mining ban, when large-scale miners relocated to the country. At its peak, Kazakhstan contributed 27% of global Bitcoin mining before electricity shortages and stricter regulation reduced its share to about 4% by 2023.

Today, the government has:

• Registered 415,000 mining machines
• Issued 84 mining licenses (64 active)
• Launched the “70/30 project,” where foreign investors finance power upgrades, reserving 70% for the national grid and 30% for miners.

This scheme also supports the creation of state-backed digital assets that could feed into Kazakhstan’s sovereign crypto reserve.

Adding to this momentum, President Tokayev announced the development of “CryptoCity” in Alatau, a pilot zone where crypto payments will be tested in everyday transactions under a regulated sandbox. The proposed crypto banking infrastructure will cover exchange, storage, and transaction processing, with built-in compliance for anti-money laundering rules.

Regional Competition in Crypto Innovation

Kazakhstan’s moves reflect a wider trend in Asia, where governments are experimenting with national-level crypto adoption. Bhutan has partnered with Binance Pay and DK Bank to roll out a crypto tourism payment system, enabling airline tickets, visa fees, and hotels to be paid in over 100 cryptocurrencies. Meanwhile, Thailand recently launched TouristDigiPay, a scheme that lets foreign visitors convert digital assets into Thai baht through regulated providers.

By establishing a crypto reserve and integrating digital assets into state-backed financial systems, Kazakhstan is seeking to leap ahead of regional rivals. Its combination of policy experimentation, strategic partnerships, and infrastructure investments demonstrates a coordinated push to embed crypto into the country’s economic foundation.

Kazakhstan’s Digital Future

From welcoming Bitcoin miners in 2021 to piloting stablecoin payments, ETFs, and a central bank digital currency, Kazakhstan has rapidly transitioned from follower to innovator. The Alem Crypto Fund and its initial investment in BNB underscore the country’s intent to integrate crypto into sovereign finance, while “CryptoCity” and the digital tenge promise to bring digital assets into citizens’ everyday lives.

The country still faces challenges of volatility, regulatory oversight, and infrastructure demand. Yet its multi-pronged approach signals a clear direction: Kazakhstan is no longer merely reacting to global crypto shifts—it is positioning itself as a regional leader in digital asset adoption and state-level innovation.