Pakistan has signed an agreement with a firm connected to World Liberty Financial, the crypto platform backed by the family of US President Donald Trump, to explore the use of a dollar-pegged stablecoin for cross-border payments, Reuters reported on Wednesday, citing a source involved in the deal.
The agreement marks one of the first publicly disclosed partnerships between World Liberty and a sovereign state, and comes at a time when diplomatic and economic ties between Pakistan and the United States appear to be warming.
Under the arrangement, World Liberty Financial will work with Pakistan’s central bank to integrate its USD1 stablecoin into a regulated digital payments framework.
The token is expected to operate alongside Pakistan’s own digital currency initiatives, allowing authorities to test the use of blockchain-based payments within an official regulatory structure.
Deal signed with SC Financial Technologies; announcement later today
The source cited by Reuters said the deal was signed with SC Financial Technologies, a little-known firm linked to World Liberty Financial.
No further commercial or technical details were disclosed.
Pakistan is expected to formally announce the agreement later on Wednesday during a visit by World Liberty’s chief executive officer, Zach Witkoff, to Islamabad.
Neither Pakistan’s finance ministry nor World Liberty immediately commented on the scope or timeline of the project.
World Liberty Financial was launched in September 2024 and has rapidly emerged as a significant player in the stablecoin space, benefitting from a more crypto-friendly regulatory environment in the United States under President Trump.
Stablecoins gain traction globally
Stablecoins, digital tokens typically pegged to traditional currencies such as the US dollar, have grown sharply in market value and usage in recent years.
Advocates argue they offer faster and cheaper cross-border payments compared with traditional banking systems, while critics warn of regulatory, financial stability and governance risks.
The US administration has introduced federal rules widely seen as supportive of the crypto industry, prompting other countries to examine how stablecoins could fit into their own payment systems.
In May last year, MGX, a state-backed Abu Dhabi investment firm, used World Liberty’s stablecoin to acquire a $2bn equity stake in Binance, the world’s largest crypto exchange.
World Liberty’s expansion has also boosted income for the Trump family’s business empire, the Trump Organization, including revenue from overseas entities, Reuters reported previously.
Pakistan’s push into digital finance
Pakistan has been exploring digital currency and blockchain-based solutions as it looks to reduce reliance on cash and improve the efficiency of cross-border payments, particularly remittances, which are a crucial source of foreign exchange.
The central bank said in July that it was preparing to launch a pilot digital currency project and was finalising legislation to regulate virtual assets.
These efforts come against the backdrop of years of economic stress, including high inflation, depleted foreign exchange reserves and chronic political instability.
Having narrowly avoided a sovereign default in 2023, Pakistan faces persistent structural challenges such as weak capital formation, an inefficient bureaucracy and heavy dependence on remittance inflows.
Analysts say these pressures have eroded public confidence in traditional financial systems, creating fertile ground for alternative digital financial tools.
Crypto adoption in Pak accelerates amid reforms
In March 2025, the government launched the Pakistan Crypto Council to oversee the integration of blockchain technology and digital assets into the country’s financial system.
The council is chaired by finance minister Muhammad Aurangzeb and is tasked with developing policy, encouraging innovation and ensuring regulatory oversight.
The council appointed Changpeng Zhao, former chief executive of Binance, as a strategic adviser on crypto regulation in April.
A month later, Prime Minister Shehbaz Sharif named Bilal Bin Saqib, the council’s chief executive, as special assistant on blockchain and cryptocurrency, with minister of state rank.
In May, Pakistan also unveiled its first state-backed Strategic Bitcoin Reserve at a crypto conference in the United States and announced plans to allocate 2,000 megawatts of surplus electricity for bitcoin mining and AI data centres.
While crypto transactions were illegal in Pakistan until recently, officials say the moves are aimed at attracting foreign investment and engaging with the global crypto industry.
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