Pakistan Partners with Financial Freedom to Pilot USD1 Stablecoin for Cross-Border Payments

This agreement reflects Pakistan’s growing interest in stablecoins as a complement to its digital currency and payment strategy.

Pakistan has signed a partnership agreement with a firm affiliated with World Liberty Financial (WLF) to test the use of its USD1 stablecoin.

The agreement represents the first publicly announced cooperation involving the WLF, and comes as relations between Pakistan and the United States show signs of warming.

Details from the Agreement

According to a Reuters report, the Pakistan Virtual Asset Regulatory Authority has signed an agreement with SC Financial Technologies, an entity linked to WLF. The regulator explained that the memorandum is intended to support dialogue and technical understanding about emerging digital payment structures.

Under the agreement, SC Financial Technologies will work with Pakistan’s central bank to explore integrating the USD1 stablecoin into a regulated digital payment system, according to a source involved in the deal. This will allow the token to work closely with the country’s digital currency infrastructure.

Zach Witkoff, CEO of WLF and SC Financial Technologies, made the announcement during a visit to Pakistan. While there, he met with top local stakeholders to discuss digital payment systems, cross-border payments, and foreign exchange processes.

SC Financial Technologies is registered in Delaware and co-owns the USD1 stablecoin product with US President Donald Trump’s crypto business, based on documents related to stablecoin funds from July 2025.

Commenting on this agreement, Pakistan’s Finance Minister Muhammad Aurangzeb said, “We are very focused on moving forward by engaging with reliable global players, understanding new financial methods, and ensuring that innovation, when evaluated, is consistent with the law, stability, and national interest.”

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Pakistan Digital Strategy

Stablecoins experienced rapid growth last year, in part because the United States passed the GENIUS Act, a federal law that sets clear rules for dollar-backed digital assets. The clarification of the rules has encouraged other countries to explore how they can be used within their financial systems.

USD1 launched on Ethereum and Binance’s BNB Chain in March 2025, and went live on the DWF Labs market makers stage just two months later. World Liberty recently proposed to use up to 5% of its unlocked WLFI tokens, which were worth about $120 million at the time, to fuel asset growth. This happened after the stablecoin changed its growing position in the financial world around the world when the state-controlled company Abu Dhabi Investment MGX used it to acquire a total of $ 2 billion from Binance.

Meanwhile, Pakistan has also boosted its digital currency efforts as it tries to reduce spending and improve cross-border payments such as remittances, a key source of foreign exchange. In July of last year, the central bank governor said the nation was preparing to launch a CBDC pilot and was finalizing a regulation to regulate virtual assets.