Ulaanbaatar is preparing to test a blockchain-based payment infrastructure in its Nalaikh district, tapping stablecoin developer Terra to spearhead the initiative. The six-month trial will introduce t
Ulaanbaatar is preparing to test a blockchain-based payment infrastructure in its Nalaikh district, tapping stablecoin developer Terra to spearhead the initiative. The six-month trial will introduce two core capabilities: direct transfers between users across different financial institutions and digital payment options via mobile devices. The undertaking responds to Mongolia's reliance on cash transactions, seeking to modernize the financial experience through secure, accessible digital transfers. An oversight committee has been established to manage implementation.
"This collaboration with Terra represents a transformation in how residents conduct daily transactions," said Nalaikh District governor Radnaabazar Choijinsambuu. "The initiative strengthens our digital payments infrastructure and establishes modern channels for government engagement and data sharing."
Terra, established by Daniel Shin—founder and leader of TicketMonster, the South Korean e-commerce giant valued at US$1.4 billion—operates from offices across Singapore and South Korea. The platform focuses on a stablecoin designed for mainstream users, with particular emphasis on the e-commerce sector. Within its work alongside Ulaanbaatar, Terra intends to refactor how residents pay utilities and receive government assistance using its digital currency.
"P2P transfers and utility-based recurring payments mark essential starting points for blockchain infrastructure development across Mongolia," Shin explained. "Subsequently, we can introduce broader financial offerings, reimagining money transfers, lending systems, and banking itself."
Ulaanbaatar joins a growing network of collaborators under the Terra Alliance banner—encompassing TicketMonster, Baemin and Carousell alongside Vietnam's Tiki. The coalition unites e-commerce operators committed to integrating the stablecoin across their services. These members collectively process US$25 billion in annual activity and serve 40 million users. Shin indicated Terra seeks to function similarly to Stripe, furnishing a payment gateway using its cryptocurrency. The company ultimately aims toward a decentralized ecosystem providing financial applications.
Institutional backing arrived through four major crypto trading platforms: Binance Labs, OKEx, Huobi Capital, and Dunamu led a US$32 million funding round completed in August 2018, accompanied by capital from Polychain Capital, China-based FBG Capital, Hashed, 1kx, Kenetic Capital, and Arrington XRP, Michael Arrington's cryptocurrency investment vehicle.
