Kazakhstan is preparing to launch a $1 billion crypto reserve fund using seized digital assets and proceeds from state-managed mining activities.
The strategic initiative aims to both diversify the nation’s oil-dependent economy and further its ambitions as a blockchain financial center in Central Asia.
Implementation of the Crypto Reserve Fund
Scheduled for rollout by early 2026, the national crypto reserve fund will be managed by the Astana International Financial Centre (AIFC) and the National Bank’s Investment Corporation. The fund’s initial capital pool will consist primarily of cryptocurrencies seized from illicit activities.
It will also include repatriated digital assets currently held overseas. Additional assets are planned to come from government-backed crypto mining and taxation of digital asset activities within Kazakhstan.
Rather than holding direct positions in volatile cryptocurrencies, the fund will invest in regulated instruments. These include crypto exchange-traded funds (ETFs) and equity shares in blockchain-focused companies.
This approach reduces custodial, market, and regulatory risks while providing exposure to the digital asset sector. The structure follows similar sovereign moves seen in the U.S. and parts of Europe, in which seized crypto assets are regulated as investments.
Regulatory Context
President Kassym-Jomart Tokayev has positioned the reserve fund as a pillar of Kazakhstan’s economic reform agenda. The objective is to decrease reliance on natural resource exports and channel capital toward technology, innovation, and digital finance.
Parallel reforms include legislative drafts to legalize and regulate the circulation of digital assets, the integration of artificial intelligence into financial infrastructure, and the broader use of blockchain and big data analytics by 2026.
The fund has ties to flagship projects, including Alatau “CryptoCity”. The proposed project is a testing ground for blockchain startups, smart city solutions, and crypto-based payments for goods and services.
Kazakhstan intends for the reserve fund to support cross-border investment, government digitalization, and new revenue streams from the fast-evolving global crypto sector.
READ MORE: Polygon Price Prediction as Polymarket Fuels Transactions Surge
