Pakistan has signed an agreement to explore the use of a dollar linked stablecoin for cross border payments as part of its broader push to modernize digital finance infrastructure. The memorandum of understanding was concluded between Pakistan’s virtual asset regulator and SC Financial Technologies, an affiliated entity of World Liberty Financial, to assess how the USD1 stablecoin could operate within a regulated payment framework. The initiative marks one of the first publicly disclosed collaborations between a sovereign state and a business linked to World Liberty, a crypto focused venture associated with the family of U.S. President Donald Trump. According to officials involved in the discussions, the partnership is intended to build technical understanding around emerging digital payment architecture rather than commit to immediate large scale deployment. The move comes as Pakistan seeks faster, cheaper alternatives for international transfers and remittances while maintaining oversight through domestic regulatory and central bank structures.
Under the agreement, SC Financial Technologies is expected to work alongside the State Bank of Pakistan to explore how USD1 could be integrated into existing and planned digital payment systems. The stablecoin would potentially operate in parallel with Pakistan’s own central bank digital currency initiatives, allowing authorities to compare private dollar linked settlement rails with sovereign digital money. Government sources familiar with the discussions said the focus is on interoperability, compliance, and risk controls, particularly given the scale of Pakistan’s remittance flows and reliance on foreign exchange inflows. The announcement coincided with a visit by World Liberty chief executive Zach Witkoff, who held meetings with senior Pakistani officials including the finance minister and other members of the economic and security leadership. Officials emphasized that any experimentation with stablecoins would be aligned with national interest, financial stability, and forthcoming virtual asset regulations currently being finalized by policymakers.
Pakistan has been steadily increasing its engagement with digital finance as it looks to reduce cash usage and improve the efficiency of cross border payments. Remittances exceed thirty six billion dollars annually and remain a critical source of foreign currency, while crypto adoption has grown rapidly among households and businesses. Regulators estimate tens of millions of users are already active in crypto markets, even as formal legal frameworks are still under development. Against this backdrop, dollar backed stablecoins are increasingly viewed as potential tools for settlement and remittance flows rather than speculative assets. The collaboration also reflects a wider global trend, as countries evaluate how privately issued digital dollars may coexist with central bank money. While the initiative has drawn attention due to its political associations, Pakistani officials have framed the agreement as exploratory and technical in nature. As legislation advances and pilot programs take shape, Pakistan’s approach could offer insight into how emerging markets balance innovation, regulation, and reliance on the U.S. dollar in the evolving digital payments landscape.
