A government-backed crypto fund just bought its first asset – not Bitcoin

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Kazakhstan launches state-backed fund

Kazakhstan has launched Alem Crypto Funda state-backed initiative to build long-term reserves of digital assets. Managed by Qazaqstan Venture Group and operating under AIFC, the fund represents a significant step in the country’s regulated adoption of blockchain-based investments.

Surprisingly, the fund’s inaugural purchase was not Bitcoin (BTC), but BNB (BNB), the native token of the BNB network. Through a strategic partnership with Binance Kazakhstan, a local entity licensed under the Astana International Financial Center (AIFC) regime, the fund was able to secure the deposit from the outset and align it with the compliance framework.

Former Binance CEO Changpeng “CZ” Zhao publicly confirmed the fund’s purchase of BNB, highlighting its importance. This initial acquisition indicates that Kazakhstan is exploring a broader, utility-based approach to digital assets rather than prioritizing Bitcoin.

Binance’s collaboration with the Kazakh government began in 2022, when CZ signed an agreement with the Ministry of Digital Development to assist shape cryptocurrency regulations. The announcement came less than a week after Kazakhstan launched its tenge-backed stablecoin, KZTE, on Solana in partnership with Mastercard, Intebix and Eurasian Bank.

Alem Crypto Fund: Structure and Objectives

Alem Crypto Fund is a state-backed initiative of Kazakhstan focusing on digital assets. It aims to build long-term cryptocurrency investment reserves within a regulated framework and boost confidence among domestic and international investors.

The strategic partnership with Binance Kazakhstan, licensed under the AIFC/Astana Financial Services Authority (AFSA) framework, helps ensure that the fund’s custody and operations are subject to regulated supervision. Deputy Prime Minister Zhaslan Madiyev described the fund’s mission as creating a “reliable instrument for large investors.”

This approach underscores Kazakhstan’s commitment to responsibly integrating blockchain into its financial system, balancing innovation with oversight. Aligning itself with global standards, Alem Crypto Fund aims to strengthen the country’s reputation as a progressive digital finance center. Overseen by the Ministry of Artificial Intelligence and Digital Development, it reflects the government’s intention to introduce organized management of digital assets.

This step builds on Kazakhstan’s recent efforts to strengthen its crypto ecosystem, such as shutting down unlicensed cryptocurrency exchanges. Collectively, these measures underscore the country’s focus on promoting blockchain innovation while ensuring that only regulated entities shape the digital finance landscape.

Did you know? Kazakhstan has long been a major center for cryptocurrency mining. In 2021, it ranked second in the world in terms of Bitcoin hashrate, i.e. the total computing power securing the network and processing transactions.

Why BNB instead of Bitcoin

Alem Crypto Fund’s first move in the digital asset market attracted attention. He purchased BNB instead of Bitcoin or Ether (ETH), which are more eminent cryptocurrencies.

Alem Crypto Fund’s first purchase surprised many: instead of Bitcoin or Ether, it chose BNB. The decision reflects a more practical approach to digital assets. BNB not only trades as a store of value, but also offers staking rewards and voting rights in network governance, giving it real utility beyond speculation.

By choosing BNB, the fund appears to balance returns with lively participation in the blockchain ecosystem. Staking can generate profit while allowing exposure to price gains, offering a combination of income and growth. The move signals a broader goal for Kazakhstan: a commitment to assets that contribute to digital finance infrastructure rather than simply having speculative value.

Did you know? In 2024, President Kassym-Jomart Tokayev called on officials to create a clearer legal structure for digital assets after shutting down several unauthorized trading platforms in the country.

Potential impact of Alema’s investment on Kazakhstan’s crypto arena

Kazakhstan’s novel state-backed crypto fund could boost investor confidence and assist the country lead the region’s growing digital economy.

Alem’s investment in BNB is an essential moment for the cryptocurrency sector in Kazakhstan, positioning the country as a potential digital finance center in the region. The initiative aims to attract mainstream investors seeking access to digital assets in a secure and regulated environment. Alem’s structure combines government support with partnerships like Binance Kazakhstan, offering a model that other countries can employ when developing national reserves of digital assets.

The fund demonstrates how government efforts can connect with the global cryptocurrency ecosystem, with the goal of building stability and credibility. Nurkhat Kushimov of Binance Kazakhstan said that the decision to choose BNB reflects confidence in the Binance network and represents progress towards broader acceptance of cryptocurrencies in Kazakhstan.

Market reaction and industry outlook to Alem’s Crypto Fund

The market responded positively to the launch of the Alem Crypto Fund, jumping from around $1,000 on September 30, 2025 to around $1,100 on October 3, 2025. This may not be a dramatic boost, but it does indicate a positive industry response.

The launch also gave other altcoins a boost. For example, the price of ETH rose from around $4,170 on September 30, 2025 to around $4,500 on October 3, 2025. The launch apparently had little impact on Solana (SOL). Priced at $210 on September 30, 2025, SOL rose to approximately $230 three days later on October 3, 2025.

Alem cannot stay with one asset, but rather invest in several holdings. This will diversify your portfolio, reducing the risk involved. The fund will be protected from volatility while benefiting from sustained expansion. It may later prove to be a saving tool for the country’s population, indicating Kazakhstan’s acceptance of blockchain technology at a mass level.

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