Tether signs MoU with Kazakhstan to explore tenge stablecoin and tokenization

On October 7, 2026, the National Bank of Kazakhstan, the Alatau City Authority, and stablecoin issuer Tether signed a memorandum of understanding to explore a tenge-pegged stablecoin and a real-world asset tokenization framework. The exploratory agreement, which does not commit the central bank to issuing a stablecoin, contemplates a pilot program in Alatau, a charter city operating under a special legal regime. This partnership follows a similar regional settlement hub agreement signed by Binance on September 7, 2026, as Kazakhstan expands its digital-asset infrastructure.

Exploration of a tenge-pegged stablecoin

• ▪The National Bank of Kazakhstan, the Alatau City Authority, and Tether signed a memorandum of understanding on October 7, 2026, to explore stablecoins, asset tokenization, and decentralized finance
• ▪The memorandum of understanding signed by Tether and the National Bank of Kazakhstan on October 7, 2026, is exploratory and does not commit the National Bank of Kazakhstan to issuing a stablecoin or adopting Tether's technology

Real-world asset tokenization partnership

• ▪The tokenization partnership between Tether and Kazakhstan's National Bank aims to identify suitable asset classes, such as bonds or real estate, and plan a pilot project within Alatau, Kazakhstan
• ▪The National Bank of Kazakhstan, the Alatau City Authority, and Tether are working to build a tokenization framework for real-world assets, potentially utilizing Tether's Hadron tokenization platform

Special legal regime of Alatau

• ▪The special legal regime of Alatau is partly modeled after Dubai and Singapore, allowing disputes to be resolved through the Astana International Financial Centre or international arbitration
• ▪Alatau, Kazakhstan, operates as a "CryptoCity" under a special legal regime signed into law on May 8, 2026, by President Kassym-Jomart Tokayev, which took effect in stages starting July 1, 2026

Binance operations in Kazakhstan

• ▪Binance Pay went live across 5,000 point-of-sale terminals through Alatau City Bank on July 8, 2026, instantly converting digital assets, mostly USDT, into tenge for merchants
• ▪Binance signed a memorandum of understanding with the National Bank of Kazakhstan on September 7, 2026, to build a regional settlement hub in the country

Debatable claims

• ▪Tokenizing real-world assets is an effective way to modernize financial markets
• ▪Kazakhstan's push to become a regional crypto hub is justified by its economic benefits
• ▪The National Bank of Kazakhstan should partner with Tether to develop its digital currency infrastructure
• ▪A privately managed tenge stablecoin is preferable to a state-run central bank digital currency