Ethereum Updates: Bhutan Utilizes Ethereum Holdings to Launch Nation’s First Blockchain-Based ID System

Bhutan Expands Blockchain Initiatives with Major Ethereum Staking

The government of Bhutan has recently staked 320 Ethereum (ETH) tokens—worth nearly $970,000—using the institutional staking platform Figment.io. This move marks a notable step forward in the country’s ongoing commitment to blockchain technology.

This development comes after Bhutan became the first nation to launch a national digital identity system on the Ethereum blockchain in October 2025. By anchoring its digital identity infrastructure on Ethereum, Bhutan is positioning itself as a leader in blockchain adoption for public services. On-chain data from Arkham confirms this staking activity, highlighting the country’s dual focus on safeguarding digital assets and utilizing decentralized networks for government operations.

Managing Digital Assets and Diversifying Reserves

Bhutan’s Ethereum holdings are managed by Druk Holding and Investments, the state’s investment arm, which also controls a Bitcoin reserve valued at $560.26 million. While Bitcoin remains the primary asset in the nation’s reserves, the recent ETH staking signals a strategic move toward proof-of-stake technologies. Bhutan has activated 10 new validators on the Ethereum network, which not only increases potential staking rewards but also strengthens the security and decentralization of the blockchain.

Digital Identity on Ethereum: A Model for the Future

The country’s digital identity project, now live on Ethereum, is designed to give citizens greater control over their personal credentials. Aya Miyaguchi, CEO of the Ethereum Foundation, emphasized during the October 2025 launch that this initiative aligns with Ethereum’s core values of transparency and long-term system reliability. The collaboration is seen as a potential model for blockchain-based governance worldwide. The government plans to complete the migration of all credentials to Ethereum by early 2026, citing the network’s security and robust validator ecosystem as key reasons for the transition.

Ethereum Market Trends and Institutional Interest

Ethereum’s price has also been in the spotlight ahead of the upcoming Fusaka upgrade on December 3, 2025. On November 27, 2025, ETH bounced back from a support level near $3,000. Analysts note that this price zone serves as a strong area of liquidity for buyers. Crypto analyst Ted Pillows suggests that if ETH maintains momentum above $3,000, it could rise toward $3,400, driven by increased inflows into spot ETFs and growing institutional interest in blockchain projects such as Bhutan’s digital ID system.

Broader Economic and Strategic Implications

Bhutan’s decision to incorporate crypto assets into its national reserves and public services is part of a broader plan to enhance economic resilience and drive innovation, particularly in the upcoming Gelephu Mindfulness City—a planned center for digital and economic growth. Despite these advancements, the country must still navigate the challenges of digital asset volatility and evolving regulatory landscapes as it expands its blockchain initiatives.

Pioneering Blockchain-Powered Public Infrastructure

Bhutan’s strategy mirrors a global trend of governments turning to decentralized technologies for governance and identity management. With over $1.02 million in unstaked ETH still held in government wallets, future transactions could further solidify Bhutan’s reputation as a trailblazer in blockchain-enabled public infrastructure.