Pakistan Partners with World Liberty Financial to Pilot USD1 Stablecoin

The Pakistan Virtual Asset Regulatory Authority has signed a memorandum of understanding with SC Financial Technologies, an entity affiliated with World Liberty Financial. According to the agreement, the primary objective is to foster dialogue and build technical understanding around emerging digital payment architectures. A source involved in the deal confirmed that SC Financial Technologies will collaborate directly with Pakistan’s central bank to explore how the USD1 stablecoin could be integrated into a regulated digital payments structure, potentially allowing the token to function alongside the country’s developing central bank digital currency (CBDC) infrastructure.

The announcement was made by Zach Witkoff, CEO of both WLF and SC Financial Technologies, during a visit to Pakistan where he met with senior local stakeholders. Discussions centered on digital payment systems, cross-border settlement mechanisms, and foreign exchange processes. Pakistan’s Finance Minister, Muhammad Aurangzeb, emphasized the strategic rationale behind the move, stating, “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.” This statement underscores the government’s intent to balance technological adoption with financial stability.

The USD1 stablecoin, co-owned by World Liberty Financial and a crypto business linked to the family of former U.S. President Donald Trump, has been gaining prominence in the digital asset space. It launched on the Ethereum and Binance’s BNB Chain networks in March 2025 and was subsequently listed on DWF Labs’ market maker platform. The stablecoin’s growing stature was notably demonstrated when the state-controlled Abu Dhabi investment company MGX used it to acquire a $2 billion stake in the cryptocurrency exchange Binance.

This growth has been partly facilitated by clearer regulatory frameworks, particularly in the United States. The passage of the federal GENIUS Act, which established clear rules for dollar-backed digital assets, has provided regulatory clarity that is encouraging countries like Pakistan to assess how such stablecoins could be utilized within their own financial systems. Furthermore, World Liberty Financial has recently proposed allocating up to 5% of its unlocked native WLFI tokens, valued at approximately $120 million, to bolster the growth and adoption of the USD1 asset.

This partnership with WLF is not an isolated initiative but fits within Pakistan’s broader strategy to digitize its economy and improve financial inclusion. The nation has been actively advancing its own central bank digital currency (CBDC) efforts, aiming to reduce heavy cash usage and streamline cross-border payments. Remittances, a critical source of foreign exchange for Pakistan, are a key area targeted for improvement through these digital innovations.

In July of the previous year, the governor of Pakistan’s central bank indicated that the nation was preparing to launch a CBDC pilot and was in the process of finalizing legislation to regulate virtual assets. The concurrent exploration of a regulated private stablecoin like USD1 suggests a multi-faceted approach. Pakistan is examining both sovereign digital currency and regulated private sector solutions to modernize its payment systems, enhance settlement efficiency, and potentially attract foreign investment through more transparent and technologically advanced financial channels.