Tether has signed a memorandum of understanding with the National Bank of Kazakhstan and the Alatau City Authority to explore new stablecoin applications and blockchain-based asset tokenization.
The agreement, announced on October 7, brings together the issuer of USDT, Kazakhstan's central bank and authorities overseeing the development of Alatau, a planned smart city near Almaty.
According to Tether, the collaboration will focus on a potential stablecoin pegged to Kazakhstan's national currency, the tenge, alongside projects involving tokenized real-world assets.
The memorandum establishes a framework for research and cooperation rather than authorizing an immediate product launch.
Neither a launch date nor an issuer for the proposed stablecoin has been announced.
Kazakhstan Explores a Tenge-Backed Stablecoin
The first part of the agreement focuses on examining how national-currency stablecoins could operate within Kazakhstan's financial system.
The three organizations will study international stablecoin issuance models before developing a concept and proposal for a potential pilot.
The research will cover practical considerations surrounding token issuance, reserve management and regulatory oversight, with Tether contributing its experience operating blockchain-based financial infrastructure.
The initiative could eventually provide Kazakhstan with another option for digital payments and settlement using its domestic currency.
However, the agreement does not mean that the National Bank will directly issue the token or that a tenge stablecoin has already received regulatory approval.
Any implementation would depend on the results of the research and subsequent decisions by the participating institutions.
Alatau Could Host Real-World Asset Tokenization
The second major component involves real-world asset tokenization, a process that represents ownership or rights associated with traditional assets through blockchain-based tokens.
The partners plan to identify suitable asset categories, develop an operating model and explore launching a pilot within Alatau.
One potential technology provider is Hadron by Tether, the company's tokenization platform introduced in November 2024.
Hadron is designed to support the creation and management of tokenized assets, potentially including financial instruments and property-related assets.
The memorandum also includes educational workshops for central bank personnel, covering stablecoin issuance, reserve management and tokenization practices.
No implementation timetable has been confirmed for either the stablecoin or asset-tokenization pilot.
Kazakhstan Expands Its Digital Asset Strategy
Alatau is being developed as a smart city and financial technology hub in Kazakhstan's Almaty region.
The project, valued at approximately $7.2 billion, aims to introduce modern infrastructure, digital financial services and a specialized legal environment designed to attract international businesses.
President Kassym-Jomart Tokayev has previously supported allowing cryptocurrency payments within the city as part of Kazakhstan's broader digital economy ambitions.
The Tether partnership follows several other initiatives involving cryptocurrencies and tokenized financial products.
In March, Kazakhstan's central bank outlined plans to allocate up to $350 million toward crypto-related investments, potentially including shares in cryptocurrency businesses and investment funds rather than direct token purchases.
By September, officials reported that the country's national crypto reserve had reached approximately $700 million, with around $200 million already invested, primarily through hedge funds.
Kazakhstan Already Has a Tenge Stablecoin Pilot
The new partnership builds on Kazakhstan's existing experience with blockchain-based financial products.
In September 2025, Kazakhstan launched Evo, a tenge-pegged stablecoin pilot on Solana, developed by Intebix and Eurasian Bank with support from Mastercard.
The project operates within the National Bank's regulatory sandbox, allowing financial innovations to be tested under regulatory supervision.
Importantly, Evo is issued by private-sector participants rather than the central bank itself.
Kazakhstan is also pursuing separate real-world asset tokenization initiatives. Authorities have outlined plans to tokenize two properties in Alatau, valued at up to $50 million and $10 million, using infrastructure associated with the Kazakhstan Stock Exchange.
These projects demonstrate how the country is exploring both digital currencies and blockchain-based ownership records.
The latest agreement with Tether could expand those efforts, although the proposed stablecoin and tokenization pilots remain exploratory.
For now, the partnership represents another step in Kazakhstan's efforts to develop regulated blockchain infrastructure while attracting international companies involved in stablecoins and digital assets.
