Pakistan and World Liberty Financial

Pakistan has officially signed an agreement with the cryptocurrency project World Liberty Financial (WLFI), which is linked to the family of former U.S. President Donald Trump, to introduce the USD1 stablecoin into the country’s national financial system. This agreement opens a new chapter in the history of digital asset regulation in Pakistan and demonstrates the state’s intention to integrate modern blockchain technologies and tokenized financial solutions into official payment processes.

The document is structured as a memorandum of understanding (MoU) between Pakistan’s Virtual Assets Regulatory Authority (PVARA) and SC Financial Technologies, a relatively little-known company that is officially affiliated with World Liberty Financial. The parties agreed to conduct a comprehensive study and technical analysis of the possibility of integrating a U.S. dollar-backed stablecoin into the country’s regulated payment infrastructure. The main goal is to create a secure, transparent, and compliant system that would allow the use of digital tokens for cross-border settlements, international transfers, and other financial operations.

According to PVARA, the memorandum establishes a platform for “technical cooperation in the field of digital payments and the development of new models of regulated cross-border financial systems.” A Reuters source clarified that SC Financial Technologies will work jointly with Pakistan’s central bank to assess the feasibility of incorporating the WLFI USD1 stablecoin into the national payment system and to ensure its compatibility with existing regulations and security standards. It is expected that this token will be able to operate in parallel with other digital currency systems under development in the country, including government initiatives to create a CBDC (Central Bank Digital Currency) and to integrate innovative financial instruments.

Pakistan’s Minister of Finance, Muhammad Aurangzeb, emphasized the strategic importance of the cooperation: “Our priority is to stay one step ahead by working with reputable global players, exploring new financial models, and ensuring that innovation is applied within existing regulatory frameworks, supports stability, and aligns with the country’s national interests.”

Stablecoins, as digital assets usually pegged to the U.S. dollar or another stable currency, have shown significant growth and development in recent years, especially amid the global expansion of crypto markets and the growing interest of financial institutions in tokenized payment solutions. In recent years, stablecoins have become widely used by international companies, financial intermediaries, and regulated platforms, as they enable fast, transparent, and low-cost cross-border transfers, bypassing traditional banking chains and reducing transaction costs.

For Pakistan, this agreement represents a strategic attempt to strengthen the country’s position in the global financial arena and to prepare for the future digital economy. The introduction of the USD1 stablecoin will not only modernize the national payment infrastructure but also create conditions for attracting international investment, increasing transparency in settlements, and expanding opportunities for cross-border trade.

It is important to note that under the administration of Donald Trump, the United States actively developed federal regulatory frameworks for cryptocurrencies and stablecoins, creating relatively favorable conditions for the legal adoption of tokenized assets. While global regulators continue to cautiously study the impact of stablecoins on traditional payment systems and financial markets, Pakistan is demonstrating a willingness to move one step ahead by experimenting with innovative financial solutions within agreed rules and laws.

Thus, cooperation with WLFI and SC Financial Technologies paves the way for integrating stablecoins into the real economy, allows for testing new models of cross-border payments, and positions Pakistan as one of the first countries in the region ready to combine traditional financial instruments with modern blockchain-based digital assets.