Bhutan Gives Gelephu Central Bank Power to Hold Crypto Reserves as 3iQ Mandate Takes Shape

Tracked wallets shrank, but officials dispute any major sell-off

Bhutan built a large sovereign Bitcoin position through hydro-powered mining, with wallets attributed by Arkham Intelligence to Druk Holding and Investments, or DHI, reaching about 13,000 BTC in October 2024. At that point, the visible total was more than double El Salvador’s roughly 5,900 BTC, according to the source article.

Since then, the publicly tracked balance has fallen sharply. Arkham data cited by CoinDesk showed about 3,100 BTC by mid-May, while The Block reported around 1,750 BTC by June 17 after a transfer of 533 BTC to Binance. Social media posts this week placed the tracked amount near 500 BTC, though that figure was not independently confirmed.

DHI has challenged the idea that the drop reflects liquidation. In July, it told The Bhutanese that most of its Bitcoin had been moved from the public wallets followed by Arkham into professional custody wallets and trading platforms that are harder to track on-chain. The newspaper reported that Bhutan still holds well above 10,000 BTC, continues mining at full capacity from facilities under 500 MW, and had made no major sales in the prior 12 to 18 months other than small disposals to cover operating costs.

A 10,000 BTC pledge became a reserve management strategy

The current strategy traces back to the King’s National Day address in December 2025, when Jigme Khesar Namgyel Wangchuck pledged up to 10,000 BTC, then valued at about $1 billion, to help finance the development of Gelephu Mindfulness City.

On July 30, GMC named Toronto-based 3iQ to manage part of that Bitcoin reserve. Neither GMC nor 3iQ disclosed how much Bitcoin is included, where it came from, or whether the mandate involves lending, derivatives or other structures. GMC said only that it wants long-term returns through a low-risk, market-neutral approach, implying the reserve is intended to earn yield rather than remain idle.

DHI separately told The Bhutanese it had chosen strategies targeting returns of around 5% to 6% in BTC terms, rather than higher-yield options in the 15% to 20% range. Arkham has also noted that blockchain transfers alone cannot reveal whether coins were sold, moved or pledged, leaving outside observers unable to verify the reserve’s exact disposition.

Why 3iQ matters to Bhutan’s plan

3iQ was founded in Toronto in 2012 and has a track record in listed digital asset products. It launched The Bitcoin Fund on the Toronto Stock Exchange in April 2020, described in the source article as North America’s first exchange-listed Bitcoin fund, and followed that with The Ether Fund in early 2021. In October 2023, it also introduced staking in exchange-traded products.

The firm’s ownership changed this year when Japan’s Coincheck Group completed the acquisition of about 99.8% of 3iQ’s parent company on February 28, 2026, connecting the manager to Monex Group’s institutional network in Asia. The source article notes that this institutional pedigree may be important for a sovereign client concerned with custody and reputational risk.

Even so, the mandate remains unusually opaque relative to GMC’s stated emphasis on transparency. Public statements from GMC board director Jigdrel Singay and 3iQ chief executive Pascal St-Jean described the relationship in broad terms but did not include figures or operational detail.

A new central bank for Gelephu broadens the crypto framework

Bhutan Broadcasting Service reported that the King has now signed a royal decree converting the Gelephu Financial Services Office into the Gelephu Central Bank, with GMC announcing the move on November 2. Daily Bhutan said the new institution will have full central banking powers for the city, covering monetary policy, foreign reserve management, financial stability, payment and settlement systems, liquidity support, and the development of money and capital markets.

The decree also authorizes the bank to invest in digital assets and cryptocurrencies alongside conventional reserve assets, though it does not require the purchase of any specific token. It further opens a path toward a city currency, including a digital version, subject to the King’s approval.

Important implementation details are still missing. Bhutan’s Royal Monetary Authority remains the national central bank and sole issuer of the ngultrum, and no public explanation has yet been given on how the two institutions will coordinate on currency, foreign exchange, payments or monetary policy. No transition timetable, leadership appointments or operating rules have been published, although more than 50 roles are expected to be advertised, including jobs tied to virtual asset supervision and payment systems.

What is confirmed next

For now, the clearest confirmed direction is that Gelephu is being built as a financial jurisdiction where digital assets are part of the institutional structure, from exchange licensing to reserve management. The 3iQ appointment and the central bank decree place Bitcoin within that broader system rather than leaving it as a standalone mining stockpile.

What remains unresolved is the core question outsiders have been asking since Bhutan’s on-chain balances began to fall: how much Bitcoin is still held, how much is under active management, and how the reserve strategy is being executed in practice. Until GMC, DHI or 3iQ publishes more detail, those points will remain estimates rather than established facts.