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Kazakhstan President Kassym-Jomart Tokayev has announced plans to create a National Digital Asset Fund and build a new CryptoCity in Alatau. According to forklog, the fund will act as a state-managed crypto reserve, holding strategic digital assets under the National Bank’s investment arm.
The announcement was made during Tokayev’s annual address, where he emphasized that Kazakhstan must develop “a full-fledged ecosystem of digital assets as soon as possible.” He also set a 2026 deadline for passing a digital asset law to regulate tokenized platforms and expand competition in the financial sector.
What the National Digital Asset Fund Means
The proposed fund will be managed by the National Bank’s investment corporation and accumulate cryptocurrencies and tokenized assets considered essential to the emerging digital financial system.
According to Tokayev, the fund’s purpose is to ensure that Kazakhstan holds a strategic crypto reserve in line with global developments.
Key functions of the fund include:
- Accumulating a reserve of major crypto assets
- Supporting tokenized asset markets under future regulation
- Linking crypto reserves with broader financial reforms
- Reducing reliance on third-party custodians through state oversight
Digital Asset Law by 2026
The president urged lawmakers to finalize a digital asset law by 2026. This legislation is expected to address:
- Regulation of tokenized platforms
- Integration of fintech solutions into banking
- Rules for tokenomics in local projects
- Opening the financial sector to new competitors
Tokayev said the law will play a central role in welcoming innovation while keeping oversight within a clear regulatory framework.
Expanding the Digital Tenge
Another priority outlined by Tokayev is the rollout of Kazakhstan’s central bank digital currency (CBDC), the digital tenge.
The digital tenge was launched in pilot mode in November 2023 and has since been used to finance projects through the National Fund. By mid-2025, it began appearing in public budgets.
Tokayev now wants to expand its use across:
- National budgets
- Local government spending
- State-owned enterprise accounts
This move places the digital tenge as a key instrument for both public finance and private-sector integration.
Plans for CryptoCity in Alatau
Tokayev confirmed that the southeastern city of Alatau will host Kazakhstan’s first CryptoCity. With a population of around 52,000, Alatau will serve as a testing ground for crypto-based daily commerce.
CryptoCity will allow residents to make everyday payments with digital assets, positioning it as the region’s first fully digitalized city. Tokayev described the plan as combining “technological progress and the most favorable living conditions.”
The project builds on earlier reports that Kazakhstan was preparing a pilot zone where crypto payments would be legal for goods and services.
Kazakhstan’s Role in Digital Finance
Kazakhstan has steadily built itself as a major player in the global digital finance landscape.
Recent milestones include:
- First Bitcoin ETF in Central Asia – Fonte Capital launched a spot Bitcoin ETF in August 2025 on the Astana International Exchange. BitGo serves as custodian.
- Bitcoin mining hub – At its peak, Kazakhstan accounted for 13% of global hashrate, driven by cheap electricity and favorable regulation.
- Digital tenge rollout – Active use in state projects and pilot budgets since 2023.
However, the mining boom also created strain on the national power grid and spurred illegal mining operations, which the government continues to address through regulation and enforcement.
Comparisons to Global Developments
Kazakhstan’s plan to establish a state crypto reserve follows a broader trend. Other countries, including Brazil and Indonesia, have reportedly studied similar moves after the United States considered a government-managed digital asset reserve under an executive order.
By pushing ahead with a National Digital Asset Fund, Kazakhstan seeks to place itself among the first nations with a formal crypto reserve structure.
Conclusion
Kazakhstan is advancing a structured approach to digital assets, centered on three initiatives: creating a National Digital Asset Fund to manage a state crypto reserve, establishing a legal framework by 2026 for tokenized platforms and digital markets, and developing CryptoCity in Alatau to integrate digital payments into daily life. Alongside the digital tenge rollout and support for projects like a Bitcoin ETF, the strategy balances crypto opportunities with state oversight, ensuring smooth integration into the country's financial system.
Resources:
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Digital Tenge platform: https://nationalbank.kz/en/page/Digital-Tenge
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Times of Central Asia report for Kazakhstan Plans for National Digital Asset Fund: https://timesca.com/kazakhstan-to-establish-ministry-for-ai-development-digital-code-and-crypto-asset-fund/
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forklog report for Kazakhstan’s National Digital Asset Fund: https://forklog.com/en/kazakhstan-to-establish-state-cryptocurrency-reserve/
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Fonte Capital launches Central Asia’s first spot Bitcoin ETF report by CoinDesk: https://www.coindesk.com/markets/2025/08/12/kazakhstan-s-fonte-capital-introduces-central-asia-s-first-spot-bitcoin-etf