Kyrgyzstan has officially launched a national digital exchange trading mechanism for precious metals on the platform of the Kyrgyz Stock Exchange (KSE).
The KSE, Kyrgyzaltyn OJSC, and Central Depository CJSC have signed a trilateral agreement enabling the free buying and selling of precious metals through a modern automated trading system.
The main goal of the partnership is to create a mechanism ensuring equal access to gold as a highly liquid exchange-traded asset for all categories of investors, thereby supporting the development of the national financial market.
Under the project, the Kyrgyz Stock Exchange acts as the key technological platform, ensuring transparency of transactions, process automation, monitoring, timely execution of trades, transparent settlements, secure recording of ownership rights, and a high level of trust among market participants. Unlike traditional physical purchases, the exchange platform enables fair market pricing based on real-time supply and demand.
Preparations for the launch included significant updates to the regulatory framework. On March 13, the KSE Board of Directors approved amendments to the trading rules and regulations governing the precious metals sector.
Eligible participants in this market segment include commercial banks, jewelry and brokerage companies, and other legal entities registered with the Ministry of Finance’s Department of Precious Metals.
Aida Chodulova, CEO of the Kyrgyz Stock Exchange:
«Using exchange infrastructure automates processes and guarantees equal access to the asset for all categories of investors. Gold will now become a fully-fledged digital and physical instrument, with all transactions strictly recorded in the automated system. This will ensure execution, monitoring, and timely settlement of trades, transparency of payments, reliable ownership records, and a high level of trust among market participants.»
Anarkan Nogoybaeva, CEO of the Central Depository CJSC:
«The reliability of settlements is ensured by the Central Depository CJSC. We operate under the international ‘delivery versus payment’ standard. This model eliminates the risk of non-fulfillment of obligations: the transfer of ownership in the electronic register occurs instantly and only after payment is confirmed, providing the highest level of security for investors.»
Argen Zhamaev, Deputy Chairman of the Board of Kyrgyzaltyn OJSC:
«The implementation of this agreement between the exchange and Kyrgyzaltyn will contribute to the development of the financial market, increase domestic investment attractiveness, and ensure more efficient use of national resources.»
The transition of gold trading to an exchange-based system opens up opportunities for developing a secondary market without the need for constant physical transportation of the metal. This is expected to serve as a strong driver for economic growth and provide citizens with a reliable instrument for long-term capital savings.
