Lydia (Assyrian: Luddu; Greek: Λυδία, Turkish: Lidya) was an Iron Age kingdom of western Asia Minor located generally east of ancient Ionia in the modern western Turkish provinces of Uşak, Manisa and inland İzmir. Its population spoke an Anatolian language known as Lydian.
At its greatest extent, the Kingdom of Lydia covered all of western Anatolia. Lydia (known as Sparda by the Achaemenids) was a satrapy (province) of the Achaemenid Persian Empire, with Sardis as its capital. Tabalus, appointed by Cyrus the Great, was the first satrap (governor).
Lydia was later the name of a Roman province. Coins are said to have been invented in Lydia around the 7th century BC.

First coinage

Early 6th-century BC one-third stater coin
According to Herodotus, the Lydians were the first people to use gold and silver coins and the first to establish retail shops in permanent locations. It is not known, however, whether Herodotus meant that the Lydians were the first to use coins of pure gold and pure silver or the first precious metal coins in general. Despite this ambiguity, this statement of Herodotus is one of the pieces of evidence often cited in behalf of the argument that Lydians invented coinage, at least in the West, even though the first coins were neither gold nor silver but an alloy of the two.
The dating of these first stamped coins is one of the most frequently debated topics of ancient numismatics,
with dates ranging from 700 BC to 550 BC, but the most common opinion is that they were minted at or near the beginning of the reign of King Alyattes (sometimes referred to incorrectly as Alyattes II), who ruled Lydia c. 610-550 BC.
The first coins were made of electrum, an alloy of gold and silver that occurs naturally but that was further debased by the Lydians with added silver and copper.

The largest of these coins are commonly referred to as a 1/3 stater (trite) denomination, weighing around 4.7 grams, though no full staters of this type have ever been found, and the 1/3 stater probably should be referred to more correctly as a stater, after a type of a transversely held scale, the weights used in such a scale (from ancient Greek ίστημι=to stand), which also means “standard.”
These coins were stamped with a lion’s head adorned with what is likely a sunburst, which was the king’s symbol.
To complement the largest denomination, fractions were made, including a hekte (sixth), hemihekte (twelfth), and so forth down to a 96th, with the 1/96 stater weighing only about 0.15 grams. There is disagreement, however, over whether the fractions below the twelfth are actually Lydian.

Alyattes’ son was Croesus, who became associated with great wealth. Sardis was renowned as a beautiful city. Around 550 BC, near the beginning of his reign, Croesus paid for the construction of the temple of Artemis at Ephesus, which became one of the Seven Wonders of the ancient world. Croesus was defeated in battle by Cyrus II of Persia in 546 BC, with the Lydian kingdom losing its autonomy and becoming a Persian satrapy.