Key facts
- Solana Company has signed an MOU with Alatau City, Kazakhstan, to support its crypto infrastructure development.
- The Alatau City project aims to become a major crypto hub in Central Asia.
- The initiative has secured cooperation agreements with a potential investment exceeding $6 billion.
- The collaboration will focus on digital asset treasury, blockchain infrastructure, and institutional adoption.
- Kazakhstan has previously launched a Solana Economic Zone and a Solana ETF.
Nasdaq-listed Solana Company has entered into a memorandum of understanding with Alatau City, a planned digital-first megacity in Kazakhstan, to support its ambition of becoming a central hub for cryptocurrency in Central Asia. The agreement, signed during roadshows in Shenzhen and Hong Kong in June, aims to assist in building the city's blockchain and crypto infrastructure. This initiative is part of a broader effort that reportedly secured over $6 billion in potential investments through 30 cooperation agreements.
Solana Company's collaboration with Alatau City will span four key areas: digital asset treasury, blockchain infrastructure development, accelerating institutional adoption of blockchain technology, and platform development. Alisher Abdykadyrov, CEO of the Alatau City Authority, stated that Solana Company will also participate in the development of the Alatau Crypto Cluster, a special economic zone within the city where cryptocurrency transactions will be permitted for daily use.
This move further solidifies Kazakhstan's engagement with the Solana ecosystem. In the previous year, Kazakhstan, in partnership with the Solana Foundation, launched Central Asia's first Solana Economic Zone in Astana. Additionally, the Kazakhstan Stock Exchange (KASE) recently introduced its first Solana ETF, offering investors regulated access to Solana (SOL).
The Alatau City megaproject, first presented by Kazakh President Kassym-Jomart Tokayev in May 2024, is envisioned as a fully integrated smart city featuring advanced transportation systems like low-altitude aircraft and autonomous drones, powered by hydrogen energy. Arman Tastanbekov, deputy CEO of the Alatau City Authority, indicated that AI, digital identity, and blockchain technology would be foundational to the city's design. However, the project faces challenges, with reports from The Diplomat in March indicating concerns from Kazakhstan's National Bank and Financial Monitoring Agency regarding the constitutional changes needed for a crypto-based economy. Further reports suggest that current residents are experiencing issues with basic utilities and connectivity, highlighting the significant gap between the futuristic vision and current reality.