Pakistan has taken a significant step toward modernising its digital payments landscape by signing an agreement with a company linked to World Liberty Financial, the crypto venture associated with the family of US President Donald Trump.
In an official statement issued on Wednesday, the Pakistan Virtual Asset Regulatory Authority confirmed it had signed a memorandum of understanding (MoU) with SC Financial Technologies, which it described as an affiliated entity of World Liberty Financial.
The agreement is aimed at initiating dialogue and technical cooperation on what regulators termed “emerging digital payment architectures,” with a particular focus on cross-border transactions.
Early Partnership with a Sovereign State
The MoU marks one of the first publicly disclosed partnerships between World Liberty Financial and a sovereign country, following the platform’s launch in September 2024. The development also comes at a time of improving diplomatic and economic engagement between Pakistan and the United States.
Under the agreement, SC Financial Technologies will work with the State Bank of Pakistan to explore the integration of its USD1 stablecoin into a regulated digital payments framework. According to a source familiar with the discussions, the stablecoin would operate alongside Pakistan’s planned digital currency infrastructure, rather than replacing it.
Visit by World Liberty Leadership
The announcement coincided with a visit to Pakistan by Zach Witkoff, the co-founder and chief executive of World Liberty Financial and CEO of SC Financial Technologies. Witkoff is the son of Steve Witkoff, a senior US diplomatic figure.
During his visit, Witkoff met with senior Pakistani officials to discuss digital payment systems, cross-border settlement mechanisms, and foreign exchange processes, according to the regulator.
Photographs released by PVARA showed Witkoff attending the MoU signing ceremony alongside Asim Munir, Prime Minister Shehbaz Sharif, and Finance Minister Muhammad Aurangzeb.
Government Stresses Regulation and Stability
Finance Minister Aurangzeb said Pakistan’s engagement with international crypto firms is guided by a cautious but forward-looking approach.
“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,” he said.
Global Context of Stablecoins
Stablecoins — digital assets typically pegged to the US dollar — have grown rapidly in recent years as governments and financial institutions explore faster and cheaper alternatives to traditional payment systems.
In the United States, regulatory changes introduced under President Trump have been widely viewed as favourable to the crypto industry, prompting increased interest from global investors and governments alike.
World Liberty Financial has also drawn attention for its commercial success. According to media reports, the platform contributed to a sharp rise in income for the Trump Organization in the first half of last year, including revenue linked to overseas entities.
In another high-profile transaction, Abu Dhabi–based investment firm MGX used the World Liberty stablecoin in May to acquire a $2 billion equity stake in Binance, the world’s largest cryptocurrency exchange.
Pakistan’s Digital Currency Push
Pakistan has been steadily advancing its digital finance agenda as it looks to reduce cash dependency and improve the efficiency of cross-border payments, particularly remittances — a critical source of foreign exchange for the country.
In July, the central bank governor confirmed that Pakistan is preparing to launch a pilot digital currency programme and is finalising legislation to regulate virtual assets, signaling a broader shift toward a regulated digital financial ecosystem.
