Kazakhstan central bank to invest up to $350 million in crypto-related assets: report

Kazakhstan's central bank has formed a portfolio of up to $350 million from its gold and foreign exchange reserves to invest in cryptocurrency-related assets, governor Timur Suleimenov said Friday.

Speaking at a briefing on interest rates in Almaty, Suleimenov said the bank is developing a list of instruments for the portfolio that will include more than just digital assets, Reuters reported. 

"We are currently developing a list of instruments in which we will invest. This includes not only cryptocurrency itself," he said.

The central bank is considering investments in "shares of high-tech companies related to cryptocurrencies and digital financial assets, index funds, and other instruments that exhibit similar dynamics to crypto assets," Suleimenov added.

Kazakhstan's broader crypto strategy

Central Bank Deputy Chair Aliya Moldabekova said the investment program will likely begin in April or May and emphasized that officials are not planning a large direct allocation to cryptocurrencies.

"We are not talking about any large investment in cryptocurrencies," she said, noting that the bank is currently selecting companies involved in digital asset infrastructure and related activities.

Kazakhstan has explored several initiatives to expand its role in the digital asset sector in recent years. The government previously outlined plans last June to establish a national cryptocurrency reserve funded by seized digital assets and coins mined through state-backed operations.

In November, authorities also discussed launching a crypto reserve fund valued between $500 million and $1 billion, a separate initiative which would invest in exchange-traded funds and crypto-focused companies rather than holding bitcoin or other tokens directly, seeded with proceeds from assets seized or repatriated from abroad.

As of Feb. 1, Kazakhstan's central bank reported gold and foreign exchange reserves of $69.4 billion, while the country's national fund held assets totaling $65.2 billion.