Pakistan signs agreement with World Liberty Financial affiliate to integrate USD1 stablecoin into regulated digital payments framework.
Pakistan has signed a new agreement to integrate a dollar-linked stablecoin into its regulated payments system. The deal consists of a company belonging to the World Liberty Financial and the State Bank of Pakistan. Notably, officials say the initiative is focused on faster and cheaper cross-border payments, in particular the remittances flows.
Pakistan Moves Toward Regulated Stablecoin Integration
According to Reuters, the agreement permits the use of the USD1 stablecoin along with the framework of Pakistan’s digital currency. Importantly, SC Financial Technologies will cooperate with the central bank directly with regard to technical integration. Meanwhile, the move is a signal of Pakistan’s larger interest in the regulated development of digital finance.
Reuters reported that Pakistan has signed an agreement with a company affiliated with World Liberty Financial (WLF) to work with the State Bank of Pakistan on integrating WLF’s USD1 stablecoin into the country’s regulated digital payments framework, allowing it to operate…
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World Liberty Financial is a financial platform based on crypto, started in September 2024. Consequently, this agreement is one of its first publicly announced agreements with a sovereign state. At the same time, observers see efforts at improved diplomatic and economic engagement between the two nations of Pakistan and the United States.
The memorandum was announced during a visit by World Liberty co-founder and CEO Zach Witkoff. Notably, he is also the chief executive of SC Financial Technologies. A government photograph had senior leadership present at the signing ceremony in Islamabad.
The agreement was signed by Finance Minister Muhammad Aurangzeb and Witkoff in public. Meanwhile, Prime Minister Shehbaz Sharif and army chief General Asim Munir were present at the event. Therefore, officials explained the partnership as strategically important for the program of Pakistan’s financial modernization.
Under the agreement, SC Financial Technologies will assist on regulatory and technical assessments. But officials said the memorandum does not mean that a nationwide rollout is imminent. Instead, the partnership is focused on feasibility, compliance and infrastructure alignment stages.
Stablecoin Deal Focuses on Remittances and Regulation
The first objective is a better cross-border efficiency in payments of remittances. Notably, remittances are still a significant source of foreign exchange for Pakistan’s economy. Therefore, authorities are looking for alternatives to traditional systems for settlement, which are still very expensive and time-consuming.
USD1 is a fully dollar-backed stable coin pegged 1:1 to the U.S. dollar. According to the reserve documentation, July 2025, BitGo Trust Company is the custodian. Furthermore, reserves contain short-term U.S. government treasuries and cash equivalents.
SC Financial Technologies is a Delaware-registered company and co-owner of the USD1 brand. In addition, company disclosures indicate joint ownership with World Liberty Financial. As a result, regulators are examining ownership and reserve structures through the evaluation process.
Pakistan has also enhanced supervision of virtual assets in 2025. In July 2025, legislators formed the Virtual Assets Act into the Pakistan Virtual Asset Regulatory Authority. As a result, virtual asset service providers have to now get formal licensing.
Officials said that USD1 would run within this regulated framework, if approved. Meanwhile, integration would be in line with the Pakistan developing central bank digital currency infrastructure. Therefore, authorities are striving to balance innovation with the financial stability safeguards.
The announcement comes after expectations of a formal announcement during Witkoff’s visit on January 14, 2026. However, regulatory approvals are awaiting. Ultimately, the agreement reflects Pakistan’s guarded but strategic approach towards digital asset adoption.