3iQ, a Toronto-based digital asset manager now owned by Japan's Coincheck, has announced that it will manage a portion of the Bitcoin reserves underpinning the Gelephu Mindfulness City (GMC) project in Bhutan.
3iQ will become the first designated manager of sovereign cryptocurrency for the special economic zone, which is planned to become a financial hub.
Why is 3iQ Managing Bhutan's Bitcoin?
A partnership was announced between 3iQ, now owned by Japan's Coincheck Group (NASDAQ: CNCK), and Bhutan's Gelephu Mindfulness City (GMC). 3iQ, as GMC's first asset manager, will be responsible for managing a portion of its Bitcoin assets.
3iQ has also agreed to train local Bhutanese personnel, transfer expertise, and maintain a permanent office in Gelephu, contributing to the region's development into a digital offshore financial center.
Pascal St-Jean, Director and CEO of 3iQ, stated that the company will use Bhutan's capital "responsibly, transparently, and for the long term."
Jigdel Singay, a member of the GMC board, called the deal an "important first step" in creating the city's digital asset hub. He also mentioned that 3iQ's commitment to developing local capabilities was one of the reasons for its selection.
The project is based on a promise made by King Jigme Khesar Namgyel Wangchuck of Bhutan in December 2025 during his National Day address. Cryptopolitan reported that he pledged up to 10,000 $BTC to support GMC's long-term development.
These reserves were mined using Bhutan's hydropower and are under the control of Druk Holding and Investments (DHI), the country's sovereign investment arm.
Founded in Toronto in 2012 and becoming Canada's first regulated digital asset fund manager, 3iQ acquired approximately 97% of its shares from Monex Group in a share swap deal valuing 3iQ at around $112 million. This contract with Bhutan is one of 3iQ's first sovereign contracts under its new ownership.
How Much Bitcoin is Left in Bhutan?
In May, Cryptopolitan reported that data from Arkham Intelligence showed Bhutan had withdrawn over $237 million from its reserves since January, with sovereign assets shrinking from about 13,390 $BTC in October 2024 to a much lower estimated 4,973 $BTC, making it the seventh-largest state holder of Bitcoin.
According to Arkham's current data, Bhutan held 5,600 $BTC in July, worth approximately $381 million.
Blockchain analysts believe the proceeds may be used to fund domestic priorities, including infrastructure projects like the Gelephu Mindfulness City initiative. 3iQ's new role in managing a portion of the reserves indicates that at least some of the Bitcoin allocated to GMC will not be sold.
Notably, in May, GMC launched a licensing process to attract companies already regulated in hubs like Singapore, Hong Kong, and Abu Dhabi. GMC also offers a 0% corporate tax for certain sectors and banking services through DK Bank.
