Kyrgyzstan Launches A7A5 Stablecoin to Expand Its Position as a Regional Crypto Hub

The country is advancing its digital asset regulation, testing legal frameworks, and launching licensed platforms

Kyrgyzstan is continuing to solidify its position as a regional crypto hub with the introduction of A7A5, a stablecoin that aims to bring increased stability and utility within the cryptocurrency ecosystem.

The token was issued by the Kyrgyz company Old Vector, in full compliance with local regulatory requirements and with the support of the Kyrgyz government.

As part of a strategic course set by the president of the Kyrgyz Republic, the country has adopted a comprehensive package of laws regulating the cryptocurrency market. For the first time, Kyrgyzstan has introduced full legislation on digital assets, covering all major aspects of the industry — from exchanges to token issuers. This has created a new institutional infrastructure that did not previously exist in the market.

Among the unique innovations is the mechanism for registering token issuances under official state supervision. Regulators ensure that token emissions comply with legal standards, are backed by fiat reserves, undergo regular audits, and meet all obligations to token holders. In essence, Kyrgyzstan provides one of the most transparent and secure tokenization models in the world.

The first issuance of A7A5 (mint) was carried out in full accordance with the new national legislation — under the supervision of regulatory authorities and directed to a licensed and registered broker. A7A5 is now available for trading on the regulated Meer Exchange and is expected to be listed on decentralized platforms in the future. Its fiat reserves are securely stored in bank accounts and audited quarterly by independent firms. One of the key advantages of A7A5 is the opportunity to earn up to 20% annually, powered by a combination of reserve-backed support and additional DeFi-based income strategies.

The digital asset market is increasingly blending traditional finance with decentralized technology. Stablecoins have enabled users to:

• Transfer value quickly and cost-effectively across borders;

• Access yield-generating protocols in decentralized finance (DeFi); and

•8Retain purchasing power in a turbulent macroeconomic environment.

However, despite the growth of the overall market, stablecoins not pegged to the U.S. dollar are still in their early stages.

Currency diversity: Still limited

Although the segment has grown significantly, non-dollar stablecoins show limited activity:

• Only a few stablecoins other than USDC and USDT are actively traded on centralized exchanges, limiting the scope for multi-currency strategies.

• The volume and liquidity of non-dollar stablecoins are generally lower compared to dollar-pegged tokens, especially outside major exchanges.

This lack of diversity limits the development of advanced currency strategies such as FX and carry trade, which form the backbone of traditional global financial markets — with a daily turnover exceeding $7 trillion.

What’s preventing carry trade in crypto?

To implement classic carry trade strategies in the digital asset space, several key components are still missing:

1. Non-dollar DeFi lending markets

One of the most common strategies in traditional finance is to borrow at a low interest rate in one currency and invest in assets with higher yields in another. However, DeFi currently lacks the infrastructure to borrow in most non-dollar currencies, rendering such strategies impractical. For instance, a trader could borrow U.S. dollars at 0% interest on Aave and invest in an ATOM yield aggregator at 10%, or borrow U.S. dollars at 0% on Benqi and invest in an AVAX liquidity pool at 5%. Such scenarios are technically feasible but not yet sufficiently developed for large-scale use.

2. Emerging market assets and yield aggregators

While borrowing in U.S. dollars within DeFi is possible, there is still no robust infrastructure to invest in yield-generating assets from emerging markets or to manage currency risk using derivatives. For instance, a trader could borrow U.S. dollars at 0% interest on Atonic and invest in an A7A5 (Kyrgyzstan somoni) yield aggregator on Sumer.io, or borrow U.S. dollars at 0% interest on Benqi and invest in an A7A5 liquidity pool on Orca.

The launch of A7A5, with listings on both centralized and decentralized exchanges, represents a meaningful step toward broadening the range of tools available to crypto investors. It enables:

• The creation of new, viable investment strategies in the DeFi ecosystem.

• The integration of emerging market currencies into the cryptocurrency space, expanding the possibilities for traders and investors.

• Greater stability and utility within the cryptocurrency ecosystem.

A7A5 is designed for forward-thinking investors who want to use next-generation digital finance tools to seek enhanced returns, especially given the limitations of traditional financial markets.

The listing on Meer Exchange provides liquidity, transparency, and institutional-grade access to a new class of digital assets connected to emerging economies.