Bhutan and Sei Development Foundation to deploy Sei validator network in Q1 2026

Sei Development Fund, the dedicated team behind Sei, has announced a collaboration with Druk Holding and Investments Ltd (DHI), the primary sovereign wealth fund of the Kingdom of Bhutan. The collaboration aims to deploy the Sei validator network in the Kingdom and is expected to go live this quarter. 

Sei validator network is an EVM Layer 1 blockchain that checks transactions, keeps the network secure, and helps run the chain with minimal downtimes.

With the collaboration, Bhutan will be able to gain control of the blockchain infrastructure and build real-world assets on top of the network. Projects to be explored may include data monetization, asset tokenization, and fintech tools. 

Bhutan to explore tokenization and deployment of economic incentives

The partnership announced today between the Kingdom of Bhutan and the Sei Development Fund could help increase the country’s capacity for blockchain infrastructure and unlock new pathways for data valuation.

Additionally, DHI revealed that the collaboration will unlock scientific advancements and financial technology. 

Bhutan is expected to benefit from a range of opportunities, including the exploration of tokenized assets and the deployment of novel economic incentives.

The head of DHI’s department of innovation and technology, Phuntsho Namgay, confirmed that the wealth fund will continue to explore opportunities with Sei Development Foundation as part of their digital transformation goals. 

According to Eleanor Davis, head of science and innovation at Sei Development Foundation, some upcoming projects and collaborations with Bhutan may include tokenization, payments, and personal identification. She said that the Kingdom is an early adopter of advanced technology to support economic and social initiatives. 

The collaboration forms as part of the ongoing digital transformations across the Kingdom. For instance, the Kingdom began migrating its national digital identity system to the Ethereum blockchain in October 2025, positioning the country as the first to place its nationwide identity framework on a public blockchain. 

The transition of Bhutan’s digital identity system is expected to conclude this quarter. It has been designed to give citizens control over their digital credentials while maintaining the security and transparency of state-issued identity services.

According to a Cryptopolitan report, the system anchors verifiable credentials to the Ethereum network rather than storing personal data on-chain. The report noted that the system allows identities to be independently verified while keeping sensitive data under citizen control. 

Bhutan expands its exposure in ETH and BTC cryptocurrencies

The Kingdom of Bhutan increased its Ethereum and Bitcoin investments by stacking 320 ETH, valued at approximately $970,000, via the Figment stacking validator network in November. Figment provides stacking services, enabling institutional investors to gain exposure to cryptocurrency tokens and earn rewards for securing the network. 

According to a recent Cryptopolitan report, wallets linked to Bhutan’s wealth fund were actively trading ETH leveraged positions. The wallet withdrew a cumulative of 42,000 ETH from Binance alongside $54 million USDT. The wallet then purchased more ETH, deposited it into AAVE, and borrowed more USDT, which was then used to purchase more ETH. The wallets built a total of 117,000 ETH positions, according to the report. 

Bhutan is currently the fifth-largest country by BTC holdings, with an estimated 11,286 BTC, valued at approximately $1.01 billion. The leading nation is the U.S., with approximately 198,012 BTC valued at $17.68 billion according to Bitbo data. 

The trend of firms running their own validators is on the rise, with the recent launch of validators by the partially state-owned German telecommunications firm Deutsche Telekom across multiple blockchains, including Injective, Polygon, and Celo.

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