Pakistan is exploring the integration of a stablecoin for cross-border payments through a deal with a crypto firm linked to former U.S. President Donald Trump. The Pakistan Virtual Asset Regulatory Authority announced on Wednesday that it had signed a memorandum of understanding with SC Financial Technologies, identified as an "affiliated entity" of World Liberty Financial (WLF). This agreement aims to foster "dialogue and technical understanding around emerging digital payment architectures".
World Liberty Financial, the primary crypto business associated with the Trump family, launched in September 2024. The partnership with SC Financial Technologies marks one of the first publicly acknowledged collaborations between WLF and a sovereign state. This development also occurs amidst improving relations between Pakistan and the United States.
SC Financial Technologies, though relatively unknown, is headed by Zach Witkoff, who is also the co-founder and chief executive of World Liberty. Witkoff is the son of Steve Witkoff, a U.S. special envoy. Documentation indicates that SC Financial Technologies, registered in Delaware, co-owns the USD1 stablecoin brand with World Liberty.
Under the agreement, SC Financial Technologies will collaborate with Pakistan's central bank to incorporate its USD1 stablecoin into a regulated digital payments framework. This would allow the stablecoin to function alongside Pakistan's existing digital currency infrastructure.
The announcement coincided with a visit to Pakistan by Zach Witkoff, during which he engaged with "senior Pakistani stakeholders" to discuss enhancements to digital payment infrastructure, cross-border settlement processes, and foreign exchange mechanisms. The Pakistan Virtual Asset Regulatory Authority emphasized the importance of engaging with reputable global entities to understand innovative financial models and ensure responsible innovation within the country.
In April 2025, World Liberty Financial partnered with the Pakistan Crypto Council (PCC) to promote blockchain innovation, increase stablecoin adoption, and deepen DeFi integration in Pakistan. The agreement included launching regulatory sandboxes, facilitating DeFi growth, exploring tokenization of real-world assets, expanding stablecoin applications, and providing advisory on blockchain infrastructure.
The partnership between WLF and the Pakistan Crypto Council was formalized on April 27, 2025, at an event attended by key Pakistani figures, including the Finance Minister, Chief of Army Staff, State Bank Governor, and SECP Chairman.
World Liberty Financial is significantly controlled by the Trump family, with Donald Trump listed as "Chief Crypto Advocate" and his sons, Eric and Donald Jr., as "Web3 Ambassadors". His youngest son, Barron Trump, is named the "DeFi Visionary". In October 2024, the company raised $300 million through the sale of its WLFI tokens and intends to launch the USD1 stablecoin, backed by U.S. Treasury assets.
Pakistan's proactive stance indicates a commitment to embracing financial innovation. The government has expressed intentions to announce comprehensive crypto legalization policies, potentially strengthening Pakistan's position in the global crypto market. In 2024, Pakistan ranked ninth globally in crypto adoption, with approximately 25 million users and $300 billion in annual transactions.
