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 integrating a dollar-pegged stablecoin into its national payment 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 evaluate the potential use of World Liberty’s $1 stablecoin for cross-border payments, according to a ministry announcement.
The year-long non-binding MoU aims to explore avenues for transactions in stablecoins pegged to the US dollar. The government hopes 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 called “Asset-Referenced Tokes.” The ordinance will expire in the next two months and the government will soon begin the process of turning it into law.
Finance Minister Muhammad Aurangzeb and World Liberty Financial CEO 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 attractive frontier markets for digital payments and financial innovation, driven by more than $38 billion in annual remittance flows and a rapidly growing digital economy, the Finance Ministry said.
An estimated 40 million cryptocurrency users and an industry-estimated annual trading volume of up to $300 billion place the country among those with the largest digital asset user bases globally, the ministry added.
The announcement represents one of the first publicly announced ties between World Liberty, a cryptocurrency-based financial platform launched in September 2024, and a sovereign state. It also comes amid strengthening ties between Pakistan and the United States.
Stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging its market value to a less volatile external asset, most commonly a traditional fiat currency such as the US dollar.
The Ministry of Finance said the agreement will enable structured dialogue and technical understanding around emerging 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 key Pakistani stakeholders to discuss how countries are addressing secure, compliant and transparent digital payments infrastructure, including innovations in cross-border settlement and foreign exchange processes.
The use of digital currencies as legal tender remains illegal in Pakistan and the central bank, and federal government entities are in the process of finalizing the new legal framework.
In September last year, the central bank said that restrictions under the Foreign Exchange Regulation Act (FERA), including the annual maximum 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 rapidly positioning itself as a serious contender in the global digital finance landscape, as World Liberty Financial deepens its commitment to the country to explore next-generation digital payments 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 global fintech players are increasingly seeking stable, regulation-conscious markets.
Speaking on the occasion, Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, said, “Pakistan recognizes that the future of finance is being shaped today. We aim to stay ahead by engaging with credible global players, understanding new financial models and ensuring that innovation, when explored, is aligned with regulation, stability and national interest.”
This push builds on previous engagement between World Liberty Financial and Pakistan, including the signing of a Letter of Intent (LoI) in April with the Crypto Council of Pakistan, led by CEO Bilal Bin Saqib, which laid the foundation for knowledge sharing and ecosystem-level dialogue around emerging financial technologies.
It also follows recent regulatory developments in Pakistan’s digital assets sector. On December 12, Pakistan’s newly created Virtual Asset Regulatory Authority issued no-objection certificates (NOC) to Binance and HTX, allowing both platforms to begin local incorporation in Pakistan.
These NOCs were issued in less than five months, faster than comparable timelines seen in other jurisdictions globally. As part of the engagement, Binance founder Changpeng Zhao and TRON founder Justin Sun also visited Pakistan and met with key public and private sector stakeholders 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 seen as a market to watch in the evolution of global digital finance.
Meanwhile, the World Liberty Financial delegation, led by Zachary Witkoff, visited Field Marshal Syed Asim Munir, Inter-Services Public Relations (ISPR) reported. He added that the meeting reflected the growing interest of international private investment groups in Pakistan’s changing economic landscape.
During the meeting, Witkoff highlighted the immense economic potential that Pakistan has and praised the efforts of Pakistan’s leadership in adopting futuristic technologies to harness 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 creating an enabling environment for responsible private sector participation in national development.
