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Bhutan Launches Gold-Backed Digital Token TER on Solana Blockchain
- Ripradaman R
- Jan 27
- 2 min read
Introduction
Bhutan has introduced a gold-backed digital token named TER, built on the Solana blockchain.
This move signals a growing interest by sovereign entities in tokenized assets and blockchain-based financial infrastructure.
TER aims to combine the stability of gold with the efficiency of blockchain technology.
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What Is the TER Digital Token?
TER is a blockchain-based digital token backed by physical gold reserves.
It represents ownership of gold in a digital format, enabling faster and more transparent transactions.
Key points:
Backed by sovereign gold reserves
Issued by entities associated with Bhutan’s Gelephu Mindfulness City initiative
Built on the Solana blockchain
Interesting Read:
Why Solana Blockchain Was Chosen
Solana is known for high-speed transactions and low costs, making it suitable for tokenized assets.
Key advantages:
High scalability
Low transaction fees
Strong developer ecosystem
Institutional-grade blockchain infrastructure
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How Gold-Backed Tokens Work
Gold-backed tokens represent real-world gold stored in vaults. Each token corresponds to a fixed quantity of gold.
Benefits include:
Price stability compared to volatile cryptocurrencies
Digital ownership of physical assets
Easy transfer and settlement
Strategic Implications for Bhutan
Bhutan’s move reflects a broader strategy to integrate blockchain into financial and digital infrastructure.
Potential objectives:
Positioning Bhutan as a digital finance hub
Attracting global blockchain investments
Enhancing transparency in asset-backed instruments
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Impact on Crypto and Traditional Markets
Gold-backed tokens bridge the gap between traditional finance and digital assets.
Market implications:
Increased institutional interest in tokenized commodities
Alternative to stablecoins backed by fiat
Growing competition in tokenized gold market
Risks and Challenges
Despite its promise, tokenized gold carries risks.
Key challenges:
Regulatory uncertainty across jurisdictions
Custody and verification of gold reserves
Market liquidity and adoption levels
Conclusion
Bhutan’s launch of the TER gold-backed digital token marks a significant step in sovereign blockchain adoption.
By combining gold’s stability with blockchain efficiency, TER could reshape how digital assets and commodities interact.
However, regulatory clarity and transparency will be critical for long-term success.
FAQ
Q1. What is Bhutan’s TER token?
TER is a gold-backed digital token issued on the Solana blockchain.
Q2. Is TER similar to stablecoins?
Yes, but instead of fiat currency, it is backed by physical gold.
Q3. Why is Solana used for TER?
Solana offers fast transactions, low fees, and high scalability.
Q4. Can investors buy TER globally?
Availability depends on regulatory approvals and exchange listings.
Q5. What are the risks of gold-backed tokens?
Risks include regulatory issues, custody transparency, and liquidity constraints.
Citations
World Gold Council
Reserve Bank and central bank digital asset research publications
Solana Foundation technical documentation
International Monetary Fund (IMF) blockchain and digital asset reports
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