Ulaanbaatar, the capital of Mongolia, has announced a pilot program to introduce a blockchain-based payment system in the Nalaikh district. The system, developed by the stablecoin startup Terra, aims to modernize payments and bring the region closer to a cashless economy.
The pilot is scheduled to begin within six months and will provide two core features: peer-to-peer (P2P) transfers that enable instant payments between users of different banks, and mobile payments for everyday transactions. Officials say the initiative will introduce transparent, convenient digital payment options to a population that still relies heavily on cash. A special task force has been created to oversee implementation and monitoring of the project.
“We believe this pilot program with Terra will reform how the people of Nalaikh City make everyday payments,” said Radnaabazar Choijinsambuu, governor of the Nalaikh District of Ulaanbaatar. He added that the project will support the development of the nation’s digital payment infrastructure and create an online platform to share information and connect citizens through advanced technology.
Terra, co-founded by Korean entrepreneur Daniel Shin—who also founded and chairs e-commerce company TicketMonster—operates offices in Singapore and South Korea. The startup focuses on building a stablecoin designed for mainstream adoption with particular attention to e-commerce integration.
As an immediate step in the partnership with Ulaanbaatar, Terra will collaborate with the local government to enable utility bill payments and distribution of government subsidies using its stablecoin. Officials emphasize these recurring payments and P2P functions as foundational elements for a broader blockchain-based financial infrastructure across Mongolia.
“Facilitating P2P and recurring utility payments with Terra are important first steps towards building a blockchain-based financial infrastructure in Mongolia,” Shin said. “From there, we will expand to offer a wider range of financial services, transforming remittances, lending, and banking.”
Terra has been building a network of partners known as the Terra Alliance, which includes several prominent e-commerce firms such as TicketMonster (South Korea), Baemin (South Korea), Carousell (Singapore), and Tiki (Vietnam). The alliance represents a combined annual transaction volume of approximately US$25 billion and serves around 40 million customers, according to company statements. Members of the alliance have committed to integrating Terra’s stablecoin into their platforms.
Shin has described Terra’s vision as offering a Stripe-like payment option that complements existing payment systems by enabling merchants to accept payments using the stablecoin. Over time, the platform plans to expand into an open ecosystem supporting decentralized financial applications (DApps) and a broader suite of services.
Terra secured significant backing from major players in the cryptocurrency industry. In August 2018, leading exchanges including Binance Labs, OKEx, Huobi Capital, and Dunamu participated in a US$32 million funding round. The investment also drew participation from venture investors such as Polychain Capital, FBG Capital, Hashed, 1kx, Kenetic Capital, and Arrington XRP, the crypto fund associated with TechCrunch founder Michael Arrington.
With the Nalaikh pilot, Ulaanbaatar seeks to demonstrate how blockchain-based payments can increase transparency, reduce reliance on cash, and lay the groundwork for expanded digital financial services across Mongolia.