- Pakistan signs a memorandum of understanding with World Liberty affiliate to explore cross-border payments using a stablecoin.
- A 1 USD stablecoin could be integrated into Pakistan’s regulated payments system as digital finance efforts expand.
- The agreement highlights Pakistan’s push to become a regional hub for digital payments amid growing global stablecoin adoption.
The federal government of Pakistan has signed a memorandum of understanding (MoU) with SC Financial Technologies LLC, an affiliate of World Liberty Financial, to explore the use of World Liberty’s stablecoin for cross-border payments.
The Pakistan Virtual Asset Regulatory Authority (PVARA) announced the agreement, describing it as a step toward “dialogue and technical understanding of new digital payment architectures.”
The MoU was signed during a visit to Pakistan by Zach Witkoff, co‑founder and CEO of World Liberty and son of U.S. special envoy Steve Witkoff.
While in Pakistan, Witkoff met with senior stakeholders to discuss how countries are approaching secure, compliant, and transparent digital payment infrastructure, including innovations in cross‑border settlement and foreign exchange processes.
“Our objective is to stay ahead by engaging credible global partners, understanding new financial models, and ensuring that any explored innovation aligns with regulation, stability, and the national interest,” Finance Minister Muhammad Aurangzeb said.
Industry observers note this represents World Liberty Financial’s second engagement with Pakistan, reinforcing the country’s potential role as an early partner in testing new digital payment models, including a 1 USD stablecoin.
The MoU builds on prior efforts, including a Letter of Intent signed in April with the Pakistan Crypto Council that established a basis for knowledge sharing and ecosystem‑level dialogue on emerging financial technologies.
Stablecoin integration and global financial implications
Under the agreement, SC Financial Technologies will collaborate with Pakistan’s central bank to explore integrating the 1 USD stablecoin into a regulated digital payments framework.
This integration could allow the token to operate alongside Pakistan’s digital currency infrastructure, potentially creating a new mechanism for cross‑border settlement.
Stablecoins—digital tokens typically pegged to the U.S. dollar—have seen rapid expansion in global markets.
Regulatory developments in the United States under the Trump administration were widely viewed as favorable to the sector.
Countries worldwide are increasingly examining how stablecoins can complement existing payment systems, with regulatory compliance emerging as a key factor for broader adoption.
World Liberty’s engagements with sovereign states have already shown effects in other markets.
Reuters previously reported that in May, Abu Dhabi’s state investment firm MGX used World Liberty’s stablecoin in a $2 billion acquisition of a stake in Binance, the world’s largest crypto exchange.
Pakistan’s growing digital finance ecosystem
Pakistan has actively pursued initiatives to strengthen its digital finance ecosystem.
PVARA noted the country is emerging as an attractive frontier market for digital payments, supported by over $38 billion in annual remittance inflows, a rapidly expanding digital economy, roughly 40 million cryptocurrency users, and an annual trading volume in digital assets reaching up to $300 billion.
Recent regulatory steps include issuing No Objection Certificates (NOCs) to Binance and HTX, enabling both platforms to begin local incorporation in under five months—a faster timeline than many other jurisdictions.
Visits by Binance founder Changpeng Zhao and TRON founder Justin Sun reflect continued international interest in Pakistan’s regulatory framework and its growing digital finance market.
PVARA stated that with sustained global engagement and a structured, regulation‑focused approach, Pakistan is increasingly seen as a market to watch in the evolution of digital finance, particularly as the country explores new models for cross‑border payments and stablecoin integration.
Pakistan is also studying digital currency initiatives aimed at reducing cash reliance and improving cross‑border payments such as remittances, a critical source of foreign exchange for the country.
In July, the governor of Pakistan’s central bank said the institution was preparing to launch a pilot project for a central bank digital currency and was finalizing legislation to regulate virtual assets.