Pakistan Signs MOU With World Liberty Financial to Explore USD1 Stablecoin Integration

Pakistan has signed a memorandum of understanding (MOU) with World Liberty Financial to explore the integration of the USD1 stablecoin into the country's cross-border payments infrastructure. The agreement, announced on January 9, 2026, marks one of the first sovereign partnerships for the Trump-linked stablecoin platform. The Pakistan Virtual Assets Regulatory Authority confirmed the deal, stating it aims to explore digital finance innovation, particularly for cross-border transactions.

The MOU involves collaboration with Pakistan's central bank to integrate USD1 into a regulated digital payments framework. This would operate alongside Pakistan's own digital currency infrastructure, according to Reuters. The move is part of a broader strategy to reduce cash usage and improve remittance systems, a vital source of foreign exchange.

Zach Witkoff, CEO of World Liberty Financial and SC Financial Technologies, visited Islamabad during the announcement. He has been instrumental in expanding USD1's utility, including the recent launch of World Liberty Markets, a lending and borrowing platform powered by Dolomite. The platform already reported $50 million in total value locked two days after launch.

Why the Partnership Is Significant

The partnership with Pakistan follows a major regulatory development by World Liberty Financial. In January 2026, its subsidiary WLTC Holdings LLC filed an application with the U.S. Office of the Comptroller of the Currency to establish a national trust bank for USD1 operations. The application seeks to bring stablecoin issuance under a single federally regulated entity.

USD1 has grown rapidly since its March 2025 launch, reaching over $3.3 billion in circulation within its first year. The stablecoin is fully backed by U.S. dollars held at regulated institutions and short-duration U.S. Treasuries. It operates on 10 blockchain networks, including Ethereum, Solana, and BNB Smart Chain, and is available on major exchanges like Binance.

What the U.S. Regulatory Landscape Means for USD1

The U.S. regulatory environment has been shifting to accommodate stablecoin growth. In December 2025, the OCC granted conditional approvals to several crypto-native companies for national trust bank charters. World Liberty's application aligns with this trend and signals the firm's intent to offer stablecoin services under direct federal oversight. This could potentially make USD1 more attractive for institutional and corporate users in both cross-border and domestic settings.

The Trump administration has also played a role in shaping the regulatory climate for crypto. The GENIUS Act, signed into law in July 2025, established the first major U.S. legislative framework for stablecoin oversight. This regulatory clarity may have contributed to the growing interest in USD1 among sovereign states and financial institutions.

What Investors Should Watch For

Analysts are closely watching how USD1 performs as a regulated stablecoin and its potential adoption in cross-border payments. The partnership with Pakistan could serve as a model for other countries exploring digital finance solutions. World Liberty has already demonstrated USD1's utility in large-scale transactions, such as the $2 billion equity stake in Binance facilitated by Abu Dhabi-based MGX in May 2025.

Market participants will also be monitoring the outcome of the trust bank application and how it aligns with broader U.S. crypto regulations. If approved, the trust company structure would allow World Liberty to offer fee-free minting and redemption of USD1, along with custody services for institutional clients.

For now, the focus remains on how Pakistan will integrate USD1 into its formal digital payments infrastructure and whether the token can coexist with the country's own digital currency initiatives. The partnership underscores a growing trend of sovereign nations exploring stablecoin technology for financial innovation and efficiency.