Bhutan staked 970,000 USD worth of ETH through Figment, expanding its Holdings and on-chain activities.

Blockchain data shows that the Royal Government of Bhutan has staked 320 Ether through the Figment platform, with a cryptocurrency value of approximately $970,000, marking the latest on-chain activity for this Himalayan kingdom to expand its crypto asset holdings and validator operations. Figment is a staking service provider that helps large investors and institutions stake digital assets across multiple blockchains and earn rewards through maintaining attestation networks.

Figment platform helps Bhutan become an Ethereum validator

(Source: Arkham)

Bhutan has chosen to stake 320 ETH through the Figment platform, demonstrating that this small South Asian country is adopting a professional and institutional-level Crypto Assets management strategy. Figment is a leading global staking infrastructure provider, offering secure and reliable staking services for institutional investors, exchanges, and sovereign funds. The platform supports over 60 Blockchains, including Ethereum, Solana, and Cosmos, managing billions of dollars in staked assets.

The Ethereum attestation (PoS) mechanism requires validators to stake at least 32 ETH to operate a validation node. Bhutan staking 320 ETH means the country is running about 10 validation nodes (320÷32=10), which is a fairly active level of participation among sovereign nations. Validators can earn an annualized staking rewards of about 3-5% by validating transactions and maintaining network security. With 320 ETH staked, Bhutan can earn approximately 9.6 to 16 ETH per year, valued at about $29,000 to $48,000 at current prices.

Figment provides Bhutan with not only technical infrastructure but also compliance support and risk management. For sovereign governments, operating validation nodes directly requires a professional technical team and hardware facilities, and they also need to bear the risk of slashing that may result from node downtime. Through professional service providers like Figment, Bhutan can lower the technical threshold while ensuring the security of staked assets and the stability of rewards.

This staking event marks Bhutan's transition from passive holding of Crypto Assets to active participation in Blockchain network governance. Validators not only receive economic rewards but also possess voting rights in network upgrades and protocol changes. By becoming an Ethereum validator through Figment, Bhutan signifies that this small country is gaining a voice in the Ethereum ecosystem.

Digital Identity Strategy for Migration from Polygon to Ethereum

Bhutan's activity in the Ethereum space is not only reflected in staking activities. In October of this year, this South Asian country with a population of about 800,000 began migrating its self-sovereign digital identity system from Polygon to Ethereum, allowing residents to verify their identities and access government services on the Ethereum network. This migration plan was officially announced at a launch ceremony attended by Aya Miyaguchi, chair of the Ethereum Foundation, founder Vitalik Buterin, and Bhutan's Prime Minister Lotay Tshering.

The chairman of the Ethereum Foundation, Miyoko Aya, stated that the Ethereum integration is now online, and it is expected that all resident certificates will be fully migrated by early 2026. This digital identity system will allow Bhutanese citizens to verify their identity on-chain, access government services, medical records, educational certificates, and more, without relying on centralized databases. This decentralized identity (DID) system not only enhances data security but also grants citizens complete control over their own data.

Choosing to migrate from Polygon to Ethereum, it shows that the Bhutanese government believes that after evaluation, the security, decentralization, and long-term stability of Ethereum are more suitable for supporting national-level identity infrastructure. Although Polygon, as a Layer-2 solution, offers lower transaction costs, the consensus security and global recognition of the Ethereum mainnet are unparalleled. For sovereign governments, the security and censorship resistance of identity systems are the top priorities.

Bhutan has formed a strategic synergy through Figment by staking ETH and migrating digital identities. As an Ethereum validator, Bhutan not only benefits economically from the network but also deeply participates in the maintenance of the network on a technical level. This dual role strengthens Bhutan's position within the Ethereum ecosystem and provides infrastructure support for the long-term operation of its digital identity system.

560 million USD BTC holdings and hydropower mining

Bhutan's layout in the field of Crypto Assets began long before this ETH stake. Bhutan has been actively investing in digital assets for many years. In 2019, the country quietly started using its hydropower resources for Bitcoin mining, thereby accumulating Bitcoin. According to Arkham's data, Bhutan currently holds approximately 6,154 coins, valued at over 562 million USD at current prices, making it one of the sovereign governments with the most Bitcoin holdings in the world.

The geographical location and resource endowment of Bhutan provide a natural advantage for its Bitcoin mining. This Himalayan country has abundant hydropower resources, with hydropower accounting for more than 99% of its total electricity supply. The cost of hydropower is extremely low and is a renewable energy source, allowing Bhutan to conduct Bitcoin mining at a highly competitive cost while avoiding the environmental controversies associated with fossil fuel mining.

Unlike other countries, Bhutan's cryptocurrency strategy is not short-term speculation, but a long-term strategic layout. Since starting mining in 2019, Bhutan has experienced multiple bull and bear cycles, but has always insisted on accumulation rather than selling. This “HODL” strategy has allowed Bhutan to achieve significant paper gains when Bitcoin prices hit new highs. The $562 million BTC holdings are quite a substantial national reserve for a small country with a GDP of about $3 billion.

Bhutan Crypto Assets Layout Timeline

2019: Started using hydropower for Bitcoin mining

July 2024: Announce the promotion of Crypto Assets payment to boost the tourism industry, attracting nearly 1,000 merchants.

October 2024: Launch of the digital identity system migration from Polygon to Ethereum

November 2024: Stake 320 ETH through Figment to become an Ethereum validator.

Crypto Assets payment promotes the modernization of the tourism industry

In July this year, Bhutan announced plans to promote the development of the tourism industry and attract more young tourists by promoting cryptocurrency payments nationwide. Officials stated that this CEX-supported initiative has currently attracted nearly 1,000 merchants to participate, aiming to modernize remittance and reduce payment barriers for tourists. This plan positions Bhutan as the world's first systematically cryptocurrency-accepting tourism destination.

For international tourists, traditional cross-border payments often face issues such as high transaction fees, exchange rate losses, and processing delays. Crypto Assets payments can be completed instantly, have low fees, and do not require bank intermediaries. This convenience is particularly appealing to the young tourist demographic that seeks technological experiences. Bhutan hopes to position itself as a “Blockchain-friendly” avant-garde travel destination through this innovative payment method.

The onboarding of nearly 1,000 merchants shows that this project has achieved initial success. These merchants cover tourism-related industries such as hotels, restaurants, and souvenir shops. The support from CEX provides the technological infrastructure and user education resources for this project. Tourists can use Bitcoin, Ethereum, or stablecoins to make purchases at these merchants, who can choose to retain the Crypto Assets or exchange them for fiat currency immediately.

The increasingly active trading activities in Bhutan reflect a broader trend of institutional and corporate Bitcoin accumulation, where large holders are exerting greater influence in the market. Among investors holding corporate Bitcoin reserves, Michael Saylor's Strategy dominates with 649,870 bitcoins, while Marathon Holdings ranks second with 53,250 bitcoins. The largest known Bitcoin holder in the world remains the anonymous creator of the Bitcoin network, Satoshi Nakamoto, who is estimated to control around 1.1 million bitcoins.