A source involved in the transaction revealed on Wednesday that Pakistan has signed an agreement with a company linked to World Liberty Financial, a core cryptocurrency business entity associated with the family of former U.S. President Donald Trump, to explore the use of the company's stablecoin for cross-border payment services.
This collaboration represents one of the first publicly disclosed partnerships between World Liberty Financial, a crypto-financial platform launched in September 2024, and a sovereign state, and comes against a backdrop of warming relations between Pakistan and the United States.
The source indicated that, according to the agreement, World Liberty Financial will cooperate with Pakistan's central bank to integrate its USD1 stablecoin into a regulated digital payment system, with the token expected to operate in parallel with Pakistan's domestic digital currency infrastructure.
The individual did not disclose further details regarding the partnership with SC Fintech, the World Liberty Financial-affiliated company. It was also stated that Pakistan is expected to formally announce the agreement this Wednesday during a visit to Islamabad by World Liberty Financial's CEO, Zach Witkoff.
Pakistan's Finance Ministry and central bank have not yet responded to requests for comment on the matter.
Stablecoins are a type of digital token typically pegged to the U.S. dollar, and their market capitalization has expanded significantly in recent years. During the Trump administration, the U.S. introduced several federal regulations widely seen as favorable to the cryptocurrency industry, prompting numerous countries worldwide to explore the potential role of stablecoins in payment systems and the broader financial architecture.
In the first half of last year, World Liberty Financial contributed to a substantial revenue increase for the Trump Organization, the business entity of the Trump family, with a notable portion of that revenue originating from overseas entities. In May of the same year, Abu Dhabi's state-owned investment company MGX utilized a stablecoin issued by World Liberty Financial to acquire a $2 billion stake in Binance, the world's largest cryptocurrency exchange.
Pakistan has been actively advancing various digital currency initiatives in recent years, aiming to reduce cash circulation and improve the efficiency of cross-border payments, particularly remittances which are a critical source of foreign exchange. The Governor of the State Bank of Pakistan stated in July of this year that the country is preparing to launch a digital currency pilot project and is also finalizing legislation related to the regulation of virtual assets.
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