Finance Minister Muhammad Aurangzeb signs a memorandum of understanding as Binance founder Changpeng Zhao looks on in Islamabad. Photo: Courtesy: X/@Financegovpk
KARACHI:
Pakistan has signed a memorandum of understanding with cryptocurrency exchange Binance to explore “tokenization” of up to $2 billion in sovereign bonds, Treasury bills and commodity reserves to increase liquidity and attract investors, the Finance Ministry said on Friday.
Separately, Pakistan also gave initial clearance for Binance and HTX, a digital asset platform, to register with regulators to establish local subsidiaries and begin preparations for full exchange license applications, the virtual assets authority said.
The ministry said the agreement paved the way to explore a possible collaboration aimed at enabling tokenization and blockchain-based distribution of Pakistan’s real-world assets.
These may include sovereign bonds, Treasury bills, reserves of raw materials such as oil, gas, metals or other commodities owned by the government.
Tokenization is the process of creating a digital version of an asset. The move comes as other countries such as the United Arab Emirates, Japan and parts of the European Union expand formal licensing rules for crypto exchanges amid a broader global regulatory tightening.
The ministry also said the initiative could involve assets of up to $2 billion, subject to approvals, with the aim of improving liquidity, transparency and access to international markets.
Finance Minister Muhammad Aurangzeb said the MoU signaled Pakistan’s reform trajectory and “a long-term partnership”. Binance founder Changpeng Zhao said the deal was “a great sign for the global blockchain industry and for Pakistan,” and said it marked the beginning of a move toward full deployment of the tokenization initiative.
Pakistan’s Virtual Asset Regulatory Authority said it had issued early approvals for Binance and HTX after reviewing their governance and compliance controls. The authorizations allow them to register in the Anti-Money Laundering system, establish local units and prepare complete applications.
President Bilal bin Saqib said the authorizations begin Pakistan’s phased licensing process, noting that the level of compliance will determine which exchanges will move forward.
Pakistan ranks as the world’s third-largest crypto market by retail activity, Saqib said at Binance Blockchain Week Dubai 2025 earlier this week.
A central bank digital currency pilot and a Virtual Assets Law are also planned for 2025. Pakistan’s crypto council signed a letter of intent with US-based World Liberty Financial to explore the use of stablecoins, tokenization and other digital asset infrastructure, the Finance Ministry said in April.
