Pakistan Signs Deal With WLFI Affiliate on USD-Linked Stablecoin

The agreement, announced by the Pakistan Virtual Asset Regulatory Authority, was signed with SC Financial Technologies and is focused on exploring whether the USD1 stablecoin could be used within Pakistan’s cross-border payments and digital settlement framework, according to a report by Reuters. The move places Pakistan among the first countries to publicly acknowledge formal discussions with an entity connected to World Liberty’s growing crypto ecosystem.

Regulators were careful to frame the memorandum as exploratory rather than transactional. Officials described it as a platform for dialogue and technical understanding around new payment architectures, stressing that it does not represent a commitment to deploy the stablecoin commercially. Any future steps, they said, would remain subject to regulatory approval and coordination with the country’s central bank.

Under the arrangement, SC Financial Technologies is expected to work alongside the State Bank of Pakistan to examine how USD1 might function within a regulated payments environment. People familiar with the discussions said the idea is to assess whether the stablecoin could operate alongside Pakistan’s own digital currency initiatives, rather than replace them.

Stablecoins, which are typically pegged to the U.S. dollar, have increasingly drawn interest from policymakers as potential tools for speeding up and lowering the cost of international transfers. For Pakistan, where remittances play a central role in supporting foreign exchange reserves, improving the efficiency of cross-border payments has become a recurring policy objective.

Regulatory data cited in the announcement shows Pakistan receives more than $36 billion a year in remittance inflows. The country also has a large and active base of crypto users and significant digital-asset trading volumes. Officials have pointed to these dynamics as reasons to pursue regulated, transparent pathways for digital finance rather than allowing activity to remain informal or unmonitored.

The memorandum was announced during a visit to Islamabad by Zach Witkoff, co-founder and chief executive of World Liberty Financial and the son of U.S. special envoy Steve Witkoff. Government photographs from the signing ceremony showed Finance Minister Muhammad Aurangzeb alongside Witkoff, with Prime Minister Shehbaz Sharif and army chief Asim Munir also in attendance.

Other images released by officials showed senior figures from Pakistan’s regulatory and security institutions present at the meeting, along with World Liberty co-founders Zak Folkman and Chase Herro. The presence of such a broad group of officials highlighted the political sensitivity surrounding digital currency initiatives, particularly those involving foreign-linked crypto platforms.

Witkoff also serves as chief executive of SC Financial Technologies. Corporate documentation referenced by Reuters indicates that the Delaware-registered firm co-owns the USD1 stablecoin brand with World Liberty Financial, based on reserve disclosures published in mid-2025.

Commenting on the agreement, World Liberty spokesperson David Wachsman said the initiative could help reinforce the global role of the U.S. dollar by expanding its use through compliant, dollar-denominated digital instruments. He added that World Liberty Financial is not receiving financial compensation under the memorandum.

From Pakistan’s side, Finance Minister Aurangzeb described the engagement as part of a broader effort to stay ahead of financial innovation while maintaining stability. Officials emphasized that any experimentation with new payment technologies would need to align with regulation, risk management, and national interests.

The deal also comes against the backdrop of heightened scrutiny around World Liberty Financial and its ties to the Trump family. Crypto ventures linked to the family have generated significant income for the Trump Organization.

Pakistan has been laying the groundwork for its own digital currency pilot as part of efforts to reduce cash usage and modernize its payments system. The central bank has said it is finalizing legislation to regulate virtual assets and support a controlled rollout of digital currency infrastructure.

Viewed in that context, the USD1 stablecoin talks appear to be an extension of Pakistan’s cautious, exploratory approach rather than a decisive shift in policy. Whether the discussions ultimately lead to real-world adoption will depend on regulatory approvals, technical assessments, and political considerations in both Islamabad and Washington.

The agreement signals Pakistan’s willingness to engage with global digital-asset players, even those operating under intense geopolitical and ethical scrutiny, as it weighs how stablecoins could fit into the future of cross-border finance.