Prime Minister Shehbaz Sharif and CDF Field Marshal Asim Munir witness the signing of an MoU between the Government of Pakistan and SC Financial Technologies in Islamabad. Photo: PPI
ISLAMABAD:
Pakistan on Wednesday signed a pact with a company linked to US President Donald Trump’s family to explore the integration of a dollar-pegged stablecoin into its national payments system to enable faster and cheaper cross-border transactions.
The Ministry of Finance and SC Financial Technologies LLC – an affiliated entity of World Liberty Financial – signed a memorandum of understanding (MoU) to assess the potential use of World Liberty’s USD1 stablecoin for cross-border payments, according to a statement from the ministry.
The one-year, non-binding MoU aims to explore opportunities for transactions in US dollar-pegged stablecoins. The government expects to introduce a comprehensive legal framework within a year before declaring digital currencies as legal tender in Pakistan.
Stablecoins are regulated in Pakistan under the Virtual Assets Ordinance and are referred to as “Asset Referenced Tokes”. The regulation will expire in the next two months and the government will soon begin the process of turning the regulation into law.
Finance Minister Muhammad Aurangzeb and CEO World Liberty Financial Zachary Witkoff, son of US Special Envoy Steve Witkoff, signed the MoU at a ceremony attended by Prime Minister Shehbaz Sharif and Chief of Defense Forces (CDF) Field Marshal Syed Asim Munir.
Pakistan is emerging as one of the most compelling frontier markets for digital payments and financial innovation, fueled by over $38 billion in annual remittances, a fast-growing digital economy, the Ministry of Finance said.
An estimated 40 million crypto users and the industry’s estimated annual trade volume of up to $300 billion place the country among those with the largest user bases of digital assets worldwide, the ministry added.
The announcement represents one of the first publicly announced tie-ups between World Liberty, a crypto-based financing platform launched in September 2024, and a sovereign state. It also comes amid warming ties between Pakistan and the US.
Stablecoin is a form of cryptocurrency designed to maintain a stable value by tying its market value to an external, less volatile asset, most often a traditional fiat currency such as the US dollar.
The Treasury said the agreement will enable structured dialogue and technical understanding around new digital payment architectures, including the exploration of World Liberty Financial’s stablecoin, USD1 for cross-border transactions.
The delegation was led by Zachary Witkoff, CEO of SC Financial Technologies LLC, who also met with senior Pakistani stakeholders to discuss how countries are approaching secure, compliant and transparent digital payment infrastructure, including innovations in cross-border settlement and exchange processes.
The use of digital currencies as bids is still illegal in Pakistan and the central bank, and the federal government units are in the process of finalizing the new legal framework.
Last September, the central bank said restrictions under the Foreign Exchange Regulation Act (FERA), including the maximum annual limit of $100,000, will apply to foreign transfers of digital currencies. The SBP also said it is working on launching a new digital currency.
The Ministry of Finance said that Pakistan is fast positioning itself as a serious contender in the global digital financial landscape as World Liberty Financial deepens its engagement with the country to explore the next generation of digital payment and cross-border financial innovations.
Industry observers see World Liberty Financial’s second engagement with Pakistan as a strong indication that the country is being actively evaluated as a potential early-stage partner jurisdiction to explore new digital payment models, including its stablecoin, USD1, at a time when stable, regulation-aware markets are increasingly in demand by global fintech players.
Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, said on the occasion that “Pakistan recognizes that the future of finance is being shaped today. Our focus is to be at the forefront of engaging with credible global players, understanding new financial models and ensuring that innovation, where explored, is consistent with national regulation, stability.”
This momentum builds on previous engagement between World Liberty Financial and Pakistan, including the signing of a Letter of Intent (LoI) in April with the Pakistan Crypto Council, led by CEO Bilal Bin Saqib, which laid the foundation for ecosystem-level knowledge sharing and dialogue around new financial technologies.
It also tracks recent regulatory developments in Pakistan’s digital assets sector. On December 12, the newly established Pakistan Virtual Asset Regulatory Authority issued no-objection certificates (NOCs) to Binance and HTX, allowing both platforms to initiate local incorporation in Pakistan.
These NOCs were issued in under five months, faster than comparable timelines seen in other jurisdictions globally. As part of the engagement, the founder of Binance, Changpeng Zhao and the founder of TRON, Justin Sun also visited Pakistan, meeting with key stakeholders in the public and private sectors as part of a broader engagement around the country’s evolving digital asset and regulatory framework.
With sustained international interest and a structured, regulation-first approach, Pakistan is increasingly being viewed as a market to watch in the development of global digital finance.
Meanwhile, the delegation from World Liberty Financial, led by Zachary Witkoff, called on Field Marshal Syed Asim Munir, Inter-Services Public Relations (ISPR) said. It added that the meeting reflected the growing interest of international private investment groups in Pakistan’s evolving economic landscape.
During the meeting, Witkoff highlighted the enormous economic potential of Pakistan and praised the efforts of Pakistani leadership to embrace futuristic technologies to realize the full potential of its economic prowess.
Field Marshal Asim welcomed the exchange of views and emphasized Pakistan’s commitment to economic stability, investor confidence and enabling environment conducive to responsible private sector participation in national development.
