Pakistan signs deal to explore WLFI-linked stablecoin for payments

• Pakistan signs MoU with World Liberty affiliate to explore stablecoin-based cross-border payments.
• USD1 stablecoin may integrate with Pakistan’s regulated payments system as digital finance efforts expand.
• Deal highlights Pakistan’s push to become a key digital payments hub amid rising global stablecoin adoption.

Pakistan’s federal government has signed a memorandum of understanding (MoU) with SC Financial Technologies LLC, an affiliated entity of World Liberty Financial, to explore using World Liberty’s stablecoin for cross-border payments.

The announcement was made by the Pakistan Virtual Asset Regulatory Authority (PVARA), which described the agreement as enabling “dialogue and technical understanding around emerging digital payment architectures.”

The MoU comes amid a visit to Pakistan by Zach Witkoff, co-founder and chief executive of World Liberty and son of US special envoy Steve Witkoff.

During his visit, Witkoff met senior Pakistani 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 focus is to stay ahead of the curve by engaging with credible global players, understanding new financial models, and ensuring that innovation, where explored, is aligned with regulation, stability, and national interest,” said Finance Minister Muhammad Aurangzeb.

Industry observers note that this marks World Liberty Financial’s second engagement with Pakistan, reinforcing the country’s positioning as a potential early-stage partner for exploring new digital payment models, including the USD1 stablecoin.

The MoU builds on earlier efforts, including a Letter of Intent signed in April with the Pakistan Crypto Council, which laid the groundwork for knowledge-sharing and ecosystem-level dialogue around emerging financial technologies.

Stablecoin integration and global finance implications

Under the agreement, SC Financial Technologies will work with Pakistan’s central bank to integrate the USD1 stablecoin into a regulated digital payments structure.

This would allow the token to operate alongside Pakistan’s own digital currency infrastructure, potentially providing a new framework for cross-border settlement.

Stablecoins—digital tokens typically pegged to the US dollar—have expanded rapidly in global markets.

Under President Donald Trump, federal regulations in the United States have been widely viewed as supportive of the sector.

Countries worldwide are increasingly examining how stablecoins can complement existing payment systems, with regulatory compliance becoming a key consideration for global adoption.

World Liberty’s engagement with sovereign states has already demonstrated impact in other markets.

Reuters previously reported that in May, the state-controlled Abu Dhabi investment company MGX used World Liberty’s stablecoin to acquire a $2 billion equity stake in Binance, the world’s largest cryptocurrency exchange.

Pakistan’s growing digital finance ecosystem

Pakistan has actively pursued initiatives to strengthen its digital finance ecosystem.

The PVARA highlighted that the country is emerging as a compelling frontier market for digital payments, supported by over $38 billion in annual remittance inflows, a rapidly growing digital economy, an estimated 40 million crypto users, and an annual trading volume of up to $300 billion in digital assets.

Recent regulatory steps include the issuance of No Objection Certificates (NOCs) to Binance and HTX, allowing both platforms to initiate local incorporation in under five months—a faster timeline than in many other jurisdictions.

The visits of Changpeng Zhao, founder of Binance, and Justin Sun, founder of TRON, reflect ongoing international interest in Pakistan’s regulatory framework and growing digital finance market.

PVARA stated that with sustained global engagement and a structured, regulation-first approach, Pakistan is increasingly viewed 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 has been exploring digital currency initiatives as it looks to reduce cash usage and improve cross-border payments such as remittances, which are a key source of foreign exchange for the country.

In July, Pakistan’s central bank governor said the institution was preparing to launch a pilot for a digital currency, and that it was finalising legislation to regulate virtual assets.