Kazakhstan to launch $1 billion crypto reserve fund using seized assets by 2026: Bloomberg

Kazakhstan is forming a national cryptocurrency reserve fund valued between $500 million and $1 billion.

The fund, expected to launch by early 2026, will be seeded with assets seized or repatriated from abroad, as well as proceeds from state-backed mining operations, according to a Bloomberg report published Friday

Rather than holding bitcoin or other tokens directly, the fund will invest in exchange-traded funds and crypto-focused companies.

A long-anticipated move

The initiative marks Kazakhstan’s most concrete move yet toward institutionalizing its crypto strategy after years of testing state mining operations and tightening control over private miners.

As The Block previously reported, Kazakhstan teased plans for a state-managed crypto reserve in mid-2024, with officials suggesting the fund would consolidate seized wallets and mined tokens from state-run operations.

At the time, the country’s Agency for Financial Monitoring said the goal was to “repurpose” illicitly obtained or confiscated digital assets into a state reserve to “support economic sovereignty.”

The new Bloomberg report adds detail to that plan, noting that the upcoming fund will be managed by a state investment vehicle and may include foreign partners once operational. While specific managers have not been named, officials reportedly said the program will operate under the Astana International Financial Centre (AIFC) — the country’s main financial hub for blockchain and fintech development.