Pakistan has signed an agreement with SC Financial Technologies, an affiliate of U.S.-based World Liberty Financial, to explore the use of a dollar-backed stablecoin for cross-border payments, the government said on Wednesday.

The Pakistan Virtual Asset Regulatory Authority (PVARA) described the memorandum of understanding (MoU) as a step to enable “dialogue and technical understanding around emerging digital payment architectures”. This partnership represents one of the first publicly announced collaborations between a sovereign state and the crypto platform linked to the Trump family.

Stablecoin Integration with Pakistan’s Digital Currency Plans

Under the MoU, SC Financial Technologies will work with Pakistan’s central bank to integrate the USD1 stablecoin into the country’s regulated digital payments infrastructure. The token would operate alongside Pakistan’s planned digital currency ecosystem, enabling smoother cross-border settlement and foreign exchange transactions.

A source familiar with the deal noted that the collaboration aims to combine stablecoin efficiency with regulatory oversight, ensuring digital payments remain aligned with national financial stability and security objectives.

World Liberty CEO Visits Pakistan

The announcement coincided with a visit by Zach Witkoff, co-founder and CEO of World Liberty Financial and SC Financial Technologies. Witkoff met with senior Pakistani officials to discuss potential applications of digital payment technologies and the broader role of stablecoins in remittances, cross-border trade, and the country’s financial infrastructure.

Finance Minister Muhammad Aurangzeb emphasized:
“Our focus is to stay ahead of the curve by engaging with credible global players, understanding new financial models, and ensuring that innovation, where explored, is aligned with regulation, stability, and national interest.”

Stablecoins and Global Context

Stablecoins, typically pegged to the U.S. dollar, have surged in use as countries explore digital currency solutions to improve efficiency and reduce cash dependency. Under former President Trump, U.S. federal regulations were seen as favorable to the sector, and several international entities, including Abu Dhabi’s MGX, have previously used the World Liberty stablecoin in multi-billion-dollar investments.

Pakistan has been actively exploring digital currency initiatives to enhance remittances, reduce cash reliance, and modernize payments. The central bank has indicated that a pilot digital currency launch is in preparation, alongside new legislation to regulate virtual assets.