Bhutan has handed over a portion of its national Bitcoin reserves to a foreign entity. Gelephu Mindfulness City (GMC) officially appointed Canadian digital asset manager 3iQ to manage the city’s crypto portfolio. The appointment marks Bhutan’s first concrete step toward establishing GMC as an offshore digital financial hub focused on innovation, sustainability, and institutional-grade asset management.
The assets at stake are substantial. In December 2025, the Bhutanese government decided to allocate up to 10,000 BTC directly from its national reserve vaults. These crypto funds were earmarked specifically to fully back GMC’s development. Gelephu board director Jigdrel Singay designated 3iQ as a founding institutional partner, emphasizing the Canadian firm’s role in laying the groundwork for the city’s digital economy.
Undisclosed Details
Although the partnership has been publicly announced, many operational specifics remain tightly guarded. Both authorities and 3iQ declined to disclose the exact amount of Bitcoin handed over from the initial 10,000 BTC cap.
Arrangements regarding asset custody also remain unclear. The public has not been informed whether 3iQ acts strictly as a passive manager or if the mandate allows them to lend the state’s Bitcoin or engage in derivatives markets to generate additional yield. Questions surrounding asset control and risk exposure remain unresolved without official confirmation.
Physical Investment Amid Digital Assets
The agreement extends beyond portfolio management. 3iQ plans to establish a long-term physical presence in Gelephu, committing to invest in local talent development through intensive training programs and knowledge transfer in blockchain technology.
3iQ CEO Pascal St-Jean pledged that his firm will bring institutional-grade discipline to managing the city’s crypto treasury. He emphasized that their presence aims to assist Bhutan in operating asset management under responsible, transparent, and long-term-oriented principles.
Subsequent milestones for the project will be announced as Gelephu continues shaping itself into an international digital financial center. For Bhutan, handing over the management of state reserve assets to a third party represents both a step forward and a test of transparency. The key to its success lies in how much value returns to local citizens, not just how securely their coins are stored.
Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
