TL;DR
- Kazakhstan will launch a state digital asset fund worth between $500 million and $1 billion, financed with confiscated cryptocurrencies and profits from state-run mining operations.
- The fund is expected to be operational by early 2026 and will be managed by a public investment vehicle under the supervision of the Astana International Financial Centre (AIFC).
- The initiative aims to transform seized assets into regulated national reserves, strengthen economic sovereignty, and position the country as a regional hub for financial innovation.
Kazakhstan will establish a state digital asset fund with an initial capitalization between $500 million and $1 billion, designed to integrate confiscated digital assets and income from state mining operations into the formal financial system.
According to Bloomberg, the Kazakh government expects the fund to be operational by early 2026. It will be managed by a state investment entity under the oversight of the Astana International Financial Centre (AIFC).
The project will convert cryptocurrencies seized by authorities or repatriated from abroad into state-controlled reserves. A portion of the capital will also come from profits generated by state-managed mining activities, which since 2023 have become an important source of fiscal revenue. The initiative seeks to channel these resources into regulated financial instruments rather than holding them directly as cryptocurrencies.
The fund will not purchase Bitcoin or other tokens on the open market. Instead, its investments will focus on ETFs and shares of companies in the crypto industry, including blockchain infrastructure firms, custody providers, and technology developers for payments and mining. The goal is to generate returns without direct exposure to crypto market volatility.
Kazakhstan Aims to Strengthen Its Economic Sovereignty
In 2024, Kazakhstan’s Financial Monitoring Agency had already announced plans to create a state reserve of digital assets. At the time, the government described the goal as a mechanism to “convert” illicitly obtained assets into legitimate state resources and “reinforce economic sovereignty.” The new fund formalizes that vision through an institutional investment structure and governance aligned with international standards.
Management will be handled by a local sovereign fund, with the possibility of including foreign partners once the system becomes fully operational. AIFC officials will oversee operations and ensure transparency and traceability of funds integrated into the public finances.
Cryptocurrencies in National Economic Policy
Kazakhstan seeks to position itself as a regional hub for financial innovation. The country aims to replicate the sovereign fund model used for natural and financial resources—but applied to the crypto ecosystem—where digital reserves play a structural role in national economic policy
