Pakistan Signs Deal With Trump-Linked World Liberty Financial to Explore Stablecoin for Cross-Border Payments

Pakistan has signed a memorandum of understanding (MoU) with SC Financial Technologies, a firm linked to World Liberty Financial, to explore the use of its USD1 stablecoin in cross-border payments according to reports. The agreement is part of broader efforts to integrate digital assets into the country's formal financial infrastructure as reported. World Liberty Financial will collaborate with the State Bank of Pakistan to integrate the digital payments framework according to the agreement.

The partnership aims to streamline remittances, which are a critical source of foreign exchange for Pakistan according to financial analysis. Overseas Pakistanis send more than $30 billion annually through traditional banking channels, which often involve high fees and slow processing times as noted. The use of USD1 could reduce transaction costs and improve transparency for cross-border transfers according to industry reports.

World Liberty Financial, a firm associated with U.S. President Donald Trump, has also applied to the Office of the Comptroller of the Currency to establish a national trust bank for USD1 operations as reported. The move is part of a broader regulatory expansion for stablecoin services, including custodial and conversion operations under federal oversight according to analysis.

Why the Move Happened

Pakistan's digital finance landscape has evolved rapidly in recent years. Once opposed to cryptocurrencies, the government has gradually adopted a more open stance according to industry reports. The shift aligns with global trends and U.S. regulatory developments, which have become more favorable to stablecoins and decentralized finance as noted. The MoU with World Liberty Financial reflects Pakistan's strategic approach to digital finance modernization according to analysis.

The country is also preparing to launch a pilot for a central bank digital currency (CBDC) and is finalizing regulations for virtual assets according to market analysis. The USD1 stablecoin is expected to operate alongside these initiatives, forming a regulated and complementary digital payments ecosystem.

How the Agreement Works

Under the agreement, SC Financial Technologies will work closely with the State Bank of Pakistan to integrate USD1 into the country's digital payments system. The stablecoin will function within a regulated framework and will coexist with Pakistan's own digital currency initiatives. The collaboration includes technical cooperation, knowledge sharing, and regulatory dialogue.

World Liberty Financial CEO Zach Witkoff is in Islamabad to discuss the partnership with senior officials, including Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb. The government has emphasized its commitment to innovation while maintaining regulatory oversight and financial stability.

What Analysts Are Watching

Market observers are closely monitoring how the USD1 stablecoin will integrate with Pakistan's existing financial infrastructure. Key questions include the role of the central bank in overseeing stablecoin operations and the potential impact on remittance markets. The agreement could serve as a test case for sovereign integration of stablecoins into formal financial systems.

Regulatory scrutiny is also a concern, particularly for World Liberty Financial. U.S. Senator Elizabeth Warren has raised concerns about potential conflicts of interest tied to Trump-linked entities. If approved, the bank charter application could shape broader stablecoin regulations in the U.S. and influence global adoption trends.

The success of the USD1 initiative in Pakistan will depend on regulatory clarity, market adoption, and the ability to address geopolitical and financial risks. Analysts are watching for signs that the country will establish a sustainable and scalable model for stablecoin-based payments.