Binance set to explore tokenization of up to $2 billion in bonds, T-bills and commodity reserves in PakistanReuters reported on Friday.
The memorandum of understanding (MOU) with the world’s largest crypto exchange by trading volume highlights Pakistan’s push to use blockchain technology to unlock liquidity and attract foreign investment as it explores a formal crypto regulatory framework.
Pakistan’s Ministry of Finance said the initiative could pave the way for tokenization of additional government-owned real assets and distribution of them on blockchain-based platforms.
The announcement comes a day after the chairman of Pakistan’s Virtual Assets Regulatory Authority (VARA), Bilal Bin Saqib, announced in a video interview with CoinDesk his country’s plans to accelerate crypto adoption, leverage Bitcoin mining and launch a national stablecoin.
Pakistan’s legislative moves reflect a broader global trend. The United Arab Emirates, Japan and parts of the European Union are expanding formal licensing rules for crypto exchanges amid a broader global regulatory tightening.
Binance founder Changpeng Zhao said the agreement was “a good signal for the global blockchain industry and for Pakistan”, adding that it marks the start of a step towards full implementation of the tokenization initiative.
Also today, according to Reuters, VARA said it issued early approvals to Binance and HTX after reviewing their governance and compliance checks, allowing them to register on the Anti-Money Laundering System, set up local entities and prepare complete applications.
Binance did not immediately respond to a CoinDesk request for more information.
