Pakistan partners with World Liberty Financial to test USD1 Stablecoin for cross-border payments

The agreement highlights Pakistan’s growing interest in stablecoins to complement its digital currency and payments strategy.

Pakistan has signed a Memorandum of Understanding with a company affiliated with World Liberty Financial (WLF) to explore the use of its USD1 stablecoin.

The agreement represents one of the first publicly announced collaborations involving WLF and comes at a time when ties between Pakistan and the United States are showing signs of warming.

Details from the agreement

This is evident from a report by Reuters, the Pakistan Virtual Asset Regulatory Authority signed the agreement with SC Financial Technologies, an entity affiliated with WLF. The regulator explained that the memorandum aims to support dialogue and technical understanding around emerging digital payment architectures.

Under the agreement, SC Financial Technologies will work with Pakistan’s central bank to explore integrating the USD1 stablecoin into a regulated digital payments structure, a source involved in the deal said. This would allow the token to function alongside the country’s digital currency infrastructure.

Zach Witkoff, the CEO of WLF and SC Financial Technologies, made the announcement during a visit to Pakistan. While there, he met with senior local stakeholders to discuss digital payment systems, cross-border settlement and foreign exchange processes.

SC Financial Technologies is registered in Delaware and co-owns the USD1 stablecoin brand with the crypto company of US President Donald Trump’s family, based on documentation regarding the stablecoin’s reserves as of July 2025.

Commenting on the agreement, Pakistan’s Finance Minister Muhammad Aurangzeb said: “Our focus is to stay ahead by engaging with credible global players, understanding new financial models and ensuring that innovation, where explored, is aligned with regulation, stability and national interest.”

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Pakistan’s digital strategy

Stablecoins have experienced rapid growth over the past year, in part because the United States passed the GENIUS Act, a federal law that sets clear rules for dollar-backed digital assets. The clarity of the regulations has encouraged other countries to assess how these can be used within their own financial systems.

USD1 launched on Ethereum and Binance’s BNB Chain in March 2025 and went live on DWF Labs’ market maker platform just over two months later. World Liberty recently proposed using up to 5% of its unlocked native WLFI tokens, valued at around $120 million at the time, to fuel the asset’s growth. This came after the stablecoin increased its growing status in the global financial space when Abu Dhabi state-controlled investment firm MGX used it to acquire a $2 billion stake in Binance.

Meanwhile, Pakistan has also been advancing its own digital currency efforts as it looks to reduce the use of cash and improve cross-border payments such as remittances, which are a major source of foreign exchange. In July last year, the central bank governor said the country was preparing to launch a CBDC pilot and finalizing legislation to regulate virtual assets.