TL;DR:
- Custody agreement: Firm 3iQ was selected to manage a portion of Gelephu Mindfulness City’s Bitcoin funds in Bhutan.
- National reserves: The Kingdom of Bhutan records an approximate balance of 5,600 BTC in its state treasury as of July 2026.
- Local infrastructure: The asset manager will establish a permanent headquarters in the region and launch technical training programs for local staff.
Digital asset manager 3iQ has taken over the management of a portion of Bhutan’s Bitcoin funds allocated to the Gelephu Mindfulness City (GMC) special economic zone. The goal is to establish an international financial hub backed by crypto assets in the Asian nation.
Partnership structure and tech transfer
Canadian firm 3iQ, under majority ownership of Japanese group Coincheck following a transaction valued at $112 million, became the first investment firm officially appointed to oversee these digital resources.
Market reports indicate that the entity will establish an office in Gelephu to transfer technical expertise to local talent. 3iQ Chief Executive Officer Pascal St-Jean stated that the capital management will be executed under criteria of transparency and long-term sustainability.
For its part, the GMC board valued the asset manager’s educational commitment as a decisive factor in its final selection. Official project documentation indicates that the core objective is to transform the region into an international financial hub focused on digital services.
The assets under management originate from the fund set aside by King Jigme Khesar Namgyel Wangchuck in December 2025. During his National Day address, the monarch earmarked up to 10,000 BTC for the operational development of the special economic zone.
These cryptocurrencies were mined using state-owned hydroelectric power plants. Institutional oversight of the holdings remains the responsibility of sovereign investment arm Druk Holding and Investments (DHI).
Sovereign fund evolution and regulatory framework
On-chain records from Arkham Intelligence revealed that Bhutan’s government transferred over $237 million out of its official wallets starting in January 2026.
Market analysts suggest that these capital outflows were directed toward financing national infrastructure projects. Among these projects, the progressive construction of Gelephu Mindfulness City’s facilities stands out.
The state treasury’s balance has shown significant variations over the past year. According to Arkham Intelligence data, sovereign reserves dropped from 13,390 BTC in October 2024 to 4,973 BTC reported in May 2026.
By July 2026, settlement reports place total holdings at around 5,600 BTC, valued at approximately $381 million. This figure positions the country among the top nation-state holders of the asset globally.
GMC’s regulatory framework incorporated a fast-track licensing pathway for financial firms in May 2026. The measure targets entities already registered in jurisdictions such as Singapore, Hong Kong, or Abu Dhabi.
The economic zone’s regulations include 0% corporate tax exemptions for strategic sectors. Additionally, the ecosystem integrates commercial banking services provided by DK Bank for institutional operations.
3iQ will launch the first phase of its operations in Gelephu during the next quarter to roll out the agreed training programs and technical infrastructure.
