Pakistan Signs Agreement to Explore Stablecoin USD1 for Cross-Border Payments

Pakistan has taken another step toward advancing its digital finance ecosystem, with the Ministry of Finance signing a Memorandum of Understanding (MoU) with SC Financial Technologies LLC, an affiliated entity of World Liberty Financial, to collaborate on emerging digital payment architectures, including the potential use of the firm’s stablecoin, USD1, for cross-border transactions.

The MoU aims to establish structured dialogue and deepen technical cooperation on secure, compliant, and transparent digital payment infrastructure, as well as innovations in cross-border settlement and foreign exchange mechanisms.

A delegation led by Zachary Witkoff, Chief Executive Officer of SC Financial Technologies LLC, met senior Pakistani officials to discuss how countries worldwide are approaching regulatory frameworks and technological shifts in digital payments and settlement systems.

Officials said the engagement reflects Pakistan’s growing profile in global digital finance, with World Liberty Financial now undertaking its second round of high-level discussions in the country. Industry observers see the move as a sign that Pakistan is being considered as a potential early partner jurisdiction for testing new digital payment models, including the USD1 stablecoin.

Commenting on the development, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb said Pakistan intends to remain proactive in shaping the future of finance.

“Pakistan recognises that the future of finance is being shaped today. 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,” he said.

This latest engagement builds on a Letter of Intent signed in April between World Liberty Financial and the Pakistan Crypto Council, led by CEO Bilal Bin Saqib, which created a foundation for knowledge-sharing on emerging financial technologies.

It also comes in the wake of regulatory progress in Pakistan’s digital asset sector. On December 12, the Pakistan Virtual Asset Regulatory Authority issued No Objection Certificates (NOCs) to Binance and HTX, allowing both platforms to begin local incorporation. The NOCs were granted in under five months, a faster pace than in many other countries. As part of broader engagement, Binance Founder Changpeng Zhao and TRON Founder Justin Sun also visited Pakistan for meetings with key public and private sector stakeholders.

Pakistan is increasingly viewed as a high-potential frontier market for digital payments and financial innovation, driven by strong remittance inflows of over USD 38 billion annually, rapid growth in the digital economy, a large base of crypto users, and significant estimated digital asset trading volumes.

With rising international interest and a regulation-first approach, Pakistan is positioning itself as an important player in the global evolution of digital finance and cross-border payment systems.