Pakistan has signed an agreement with an affiliate of World Liberty Financial, the Trump family's crypto business, to explore a partnership linked to the USD1 stablecoin for cross-border payments, according to news reports, showing how quickly Islamabad is shifting from crypto caution to selective state-backed experimentation.
Pakistan’s Stablecoin Shift Deepens as it Explores USD1 Partnership With Trump's WLF
14 January 2026 - 13:03 CET
By Sandmark staff
The memorandum of understanding between the Pakistan Virtual Asset Regulatory Authority and SC Financial Technologies would pave the way for "dialogue and technical understanding around emerging digital payment architectures," according to the local Express Tribune. Media including Reuters and the Dawn newspaper also reported on the agreement.
The move fits into a broader pattern: Pakistan is increasingly positioning digital assets as a potential tool to modernize payments, boost remittances and draw foreign capital, despite a fragile macroeconomic backdrop and tight foreign exchange conditions.
Remittances account for almost $35bn annually, according to World Bank data, and policymakers have long flagged high transaction costs and delays as a structural weakness. Stablecoins, which settle faster than traditional correspondent banking rails, are increasingly pitched by governments and banks as a cheaper alternative, a trend also visible in pilot programmes across parts of Asia, Latin America and the Middle East.
The choice to explore a privately issued, dollar-linked token, rather than wait for a central bank digital currency, carries geopolitical and regulatory implications. Dollar-backed stablecoins effectively reinforce dollar usage abroad, a dynamic closely watched by central banks globally, including those wary of monetary leakage or reduced control over capital flows. Pakistan’s central bank has previously warned of risks around crypto adoption, particularly related to capital flight and financial stability.
In another illustration of Pakistan’s deepening engagement with the crypto industry, Sandmark reported last month that Islamabad signed a non-binding MoU with Binance to explore tokenizing up to $2bn in sovereign assets, including government bonds and state-owned commodities, as part of a broader push to modernise capital markets.
Taken together, the initiatives suggest Pakistan is experimenting with multiple layers of the crypto stack: exchanges, tokenization and now stablecoin-linked payment infrastructure. But none are without risk.
