On July 30, Gelephu Mindfulness City (GMC) in Bhutan announced that it has appointed Canadian digital asset management company 3iQ to manage a portion of its Bitcoin reserves. This marks the first time that the city has explicitly introduced an external professional management body since it began using its nationally held Bitcoin reserves for long-term development plans.
The initial disclosure indicates that the arrangement corresponds to a portion of the Bitcoin held by GMC, but the specific amount to be managed by 3iQ, the actual launch time, and the relevant business terms have not been disclosed.
A maximum of 10,000 BTC can be used.
In December 2025, Bhutan proposed allocating up to 10,000 BTC to support Gleppu's long-term development and economic planning. GMC previously stated that this reserve would primarily come from converting surplus hydropower resources into Bitcoin, with goals including job creation, technological advancement, and strengthening long-term fiscal resilience.
This appointment signifies that the Bitcoin reserve program has moved from setting its goals to concrete deployment. This is the clearest step the outside world has seen so far, but the actual size of the Bitcoin reserves under management authorization remains undisclosed.
Key terms have not yet been disclosed.
The company's disclosure shows that the announcement did not specify the asset size, management fees, custodian institution, or performance benchmarks for this authorization. The announcement also did not address whether 3iQ could lend Bitcoin, use derivatives, provide collateral, or employ yield enhancement strategies.
This lack of information prevents outsiders from independently assessing the arrangement's risk ceiling, return targets, and actual asset operation methods. 3iQ CEO Pascal St-Jean stated that the company will manage the funds in a "responsible, transparent, and long-term" manner. GMC Director Jigdrel Singay stated that 3iQ is one of the founding partners in the proposed local fund ecosystem.
Local license plate arrangements to be clarified
The GMC's Financial Services Office oversees both traditional financial and virtual asset businesses within the region. According to local regulations, regulated services such as asset management typically require a financial services license before commencing operations in the region.
As of July 31, no entity named 3iQ appeared on the regulatory authorities' publicly available list. However, this does not necessarily mean that 3iQ is unable to carry out the relevant arrangements, nor can it be used to determine whether it has submitted an application. This cooperation announcement did not specify which local entity 3iQ will operate under, nor did it disclose the specific regulatory framework.
Currently, GMC has announced the approval of 7 institutions, among which 8020 Finance was approved to conduct asset management business on July 23. An expedited pathway has also been established for institutions already operating in regulated overseas financial centers, but final approval still rests with the local regulator.
Further developments will depend on the progress of the disclosure.
Both parties stated that this is only the first step in a series of developments in the coming months, and that they will continue to promote the construction of local teams, the implementation of operations, and the establishment of an institutional fund ecosystem, but no formal timetable has been given yet.
The next areas of focus will include: the amount of Bitcoin under management, custody control arrangements, permitted trading or yield strategies, and regular disclosure standards. If leverage, lending, or collateralization are subsequently involved, the associated risk restrictions will also be a key factor in determining how this national Bitcoin reserve operates.
Additional information:GMC had previously denied that some transfers from wallets linked to Bhutan were sales of Bitcoin in its strategic reserves, stating that these transfers did not represent the dumping of reserves committed to the Glepp development program.
