Pakistan enters deal with US company to explore cryptocurrency for cross-border payments

ISLAMABAD: Pakistan has entered into a memorandum of understanding (MoU) with SC Financial Technologies LLC, a subsidiary of World Liberty Financial, to explore the use of a dollar-pegged stablecoin for cross-border transactions. The agreement was signed with the aim of advancing the country’s digital finance capabilities, particularly in the area of digital payments.

The Pakistan Virtual Asset Regulatory Authority (PVARA) announced the agreement, which seeks to facilitate dialogue and foster technical understanding around the emerging infrastructure for digital payments. This collaboration marks an important step for Pakistan as it positions itself as a key player in the global digital finance sector.

The MoU signing took place during the visit of Zach Witkoff, CEO of World Liberty Financial, who is also the son of US special envoy Steve Witkoff. During his visit, Witkoff engaged with high-level Pakistani officials to discuss how countries are adopting secure, compliant, and transparent digital payment systems, with a particular focus on innovations in cross-border transactions and foreign exchange.

PVARA noted that this development reflects Pakistan’s growing presence in the digital finance space. “World Liberty Financial’s increasing engagement with Pakistan underscores the country’s potential as a partner for exploring next-generation digital payment models, including its stablecoin USD1, amid a global shift towards stable, regulated markets,” the authority said in a statement.

Federal Minister for Finance Muhammad Aurangzeb commented on the partnership, reiterating Pakistan’s commitment to staying ahead of global financial trends. “Our focus is on engaging with credible international players and ensuring that innovation is aligned with regulatory frameworks, national interests, and financial stability,” he said.

This latest MoU builds on earlier collaboration between Pakistan and World Liberty Financial, including a Letter of Intent signed in April with the Pakistan Crypto Council. That agreement laid the foundation for dialogue on emerging financial technologies and the development of a regulatory ecosystem for digital assets.

The engagement also follows a significant move by the Pakistan Virtual Asset Regulatory Authority in December, when it granted No Objection Certificates (NOCs) to Binance and HTX, allowing both platforms to set up local operations in the country. These NOCs were issued in record time, reflecting Pakistan’s efficient approach to digital finance regulation compared to other global markets.

Industry experts have noted that Pakistan is quickly becoming one of the most promising frontier markets for digital payments. With an estimated 40 million crypto users and over $38 billion in annual remittance inflows, the country’s rapidly growing digital economy is attracting international fintech players looking for new opportunities in stable and regulated markets.

According to PVARA, with this strategic approach and sustained international interest, Pakistan is positioning itself as a key market to watch as digital finance evolves globally.