Pakistan stablecoin developments took a significant step forward on 14 January 2026, when senior officials in Islamabad signed an MoU with SC Financial Technologies, an affiliate of World Liberty Financial. The agreement focuses on incorporating USD1, a dollar-linked stablecoin Pakistan could leverage for remittances, trade settlements, and other financial transactions. Finance Minister Muhammad Aurangzeb presided over the signing ceremony, highlighting the government’s commitment to regulated innovation in the fintech sector.
This collaboration carries significant implications for South Asia’s evolving digital economy. Pakistan receives approximately USD 30 billion in remittances annually, accounting for around 10 percent of its GDP. By adopting stablecoins, the country could substantially reduce transfer costs and processing times, setting a potential precedent for neighbouring nations such as India and Bangladesh, where similar digital currency discussions are gaining momentum.
Dollar-Linked Stablecoin Pakistan Gains Momentum
Under the terms of the MoU, SC Financial Technologies will work closely with the State Bank of Pakistan and the Pakistan Virtual Assets Regulatory Authority (PVARA) to assess how USD1 can be integrated into the existing financial infrastructure. The dollar-linked stablecoin initiative in Pakistan is designed to complement the central bank’s planned digital currency project.
PVARA described the agreement as a platform for technical dialogue and capacity building. It covers key areas, including cross-border payments, foreign exchange efficiency, and regulatory compliance. USD1 is structured to maintain a stable one-to-one peg with the US dollar, with reserves fully documented as of July 2025.
Finance Minister Aurangzeb remarked: “Our priority is to remain proactive by partnering with reputable global entities, gaining insight into emerging financial technologies, and ensuring that any innovation we pursue remains fully aligned with regulatory standards, financial stability, and the broader national interest.”
This partnership represents one of the earliest sovereign-level engagements for World Liberty Financial Pakistan. The platform, which launched in September 2024, specialises in decentralised finance solutions and blockchain-based instruments.
World Liberty Financial Pakistan Partnership Details
Zach Witkoff, CEO of SC Financial Technologies, leads the World Liberty Financial Pakistan collaboration. During recent high-level meetings, Witkoff engaged with key stakeholders to discuss the technical and operational framework required for successful implementation.
This Trump crypto partnership draws attention due to the involvement of President Donald Trump’s family members in backing World Liberty Financial. The tie-up comes at a time when diplomatic and economic relations between the United States and Pakistan are showing signs of renewed warmth.
Pakistan’s stablecoin efforts reflect the rapid global expansion of stablecoins, whose total market capitalisation now surpasses USD 150 billion. In Pakistan’s context, where remittances play a critical role in economic stability, such tools offer a practical solution to longstanding challenges in cross-border finance.
Trump Crypto Partnership and Broader Implications
The Trump crypto partnership could reduce remittance fees from the current average of around 6 percent to less than 1 percent by utilizing blockchain technology. The initiative also aligns with Pakistan’s evolving regulatory landscape, particularly following the establishment of PVARA in 2025, which oversees virtual asset activities.
The State Bank of Pakistan has already announced plans for a central bank digital currency pilot, with initial testing expected to begin in mid-2026. Complementary legislation for virtual assets is nearing completion.
Pakistan has taken additional steps in the crypto space, including issuing no-objection certificates to major global exchanges such as Binance and HTX in December 2025. An earlier agreement with Binance explored the tokenisation of assets worth USD 2 billion.
The Pakistan stablecoin framework aims to promote greater financial inclusion, especially among the estimated 100 million adults who remain outside the formal banking system. It also holds the potential to strengthen bilateral trade and investment ties with the United States.
Background: Evolution of Pakistan’s Digital Finance Strategy
Pakistan’s journey toward embracing digital currencies accelerated following the promulgation of the Virtual Assets Ordinance in 2025. This legislation established a clear framework for licensing, supervising, and regulating virtual asset service providers.
PVARA now serves as the primary authority responsible for overseeing the sector. The regulator has already granted preliminary approvals to several international platforms.
The finance ministry has pursued additional blockchain initiatives, including the tokenisation of sovereign assets such as commodities and government bonds. These efforts are part of a broader strategy to address foreign exchange constraints and bolster national reserves, which stood at approximately USD 15 billion in late 2025.
The engagement with World Liberty Financial Pakistan builds on a letter of intent signed with the Pakistan Crypto Council in April 2025, focusing on decentralised finance and asset tokenisation.
What’s Next for Pakistan Stablecoin
Stakeholders expect follow-up technical meetings in the coming weeks to finalise implementation details. PVARA is likely to issue specific guidelines regarding the permissible use of stablecoins in domestic and international transactions.
If the pilot programs prove successful, analysts anticipate a phased rollout of dollar-linked stablecoin solutions in Pakistan by 2027. Such developments could position Pakistan as a regional leader in the adoption of regulated cryptocurrency.
At the same time, the initiative will attract close monitoring from international institutions, including the International Monetary Fund, given Pakistan’s ongoing economic programme.
Provided regulatory and operational challenges are addressed effectively, the Pakistan stablecoin framework has the potential to redefine cross-border finance in the era of the Trump crypto partnership.
Published in SouthAsianDesk, January 14th, 2026
Follow SouthAsianDesk on X, Instagram and Facebook for insights on business and current affairs from across South Asia.
