Pakistan has entered into a significant agreement with World Liberty Financial, a cryptocurrency company connected to US President Donald Trump. The deal aims to explore the use of stablecoins for international payments, marking a notable step in Pakistan's digital finance initiatives.
Details of the Agreement
On January 14, 2026, the Pakistan Virtual Asset Regulatory Authority (PVARA) announced the signing of a memorandum of understanding (MoU) with SC Financial Technologies. This company is described as an affiliated entity of World Liberty Financial. The MoU focuses on innovation in digital finance, particularly leveraging stablecoins for cross-border transactions.
According to a Reuters report, Pakistan's central bank will collaborate closely with SC Financial Technologies. The goal is to integrate World Liberty's USD1 stablecoin into a regulated digital payments framework. This move signals Pakistan's growing interest in digital assets as a key market.
Why This Deal Matters for Pakistan
For Pakistan, this agreement represents another venture into the digital currency space. The country seeks to reduce its reliance on cash and enhance cross-border payment systems. Pakistan receives over $36 billion in annual remittance inflows. It boasts an estimated 40 million crypto users and up to $300 billion in annual crypto trading volumes, as stated by PVARA.
The country is preparing to launch a pilot for a digital currency. It is also drafting legislation to regulate virtual assets. Finance Minister Muhammad Aurangzeb emphasized the importance of staying ahead in financial innovation. He said, "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."
World Liberty Financial's Background
World Liberty Financial has been a topic of controversy since its launch in September 2024. Much of the discussion centers on its unconventional and unethical relationship with US President Donald Trump. This deal with Pakistan is the company's second publicly announced agreement with a sovereign state. In May 2025, the UAE signed a deal to purchase $200 billion worth of World Liberty's stablecoins.
The company was founded by Trump and his Special Envoy Steve Witkoff, along with their sons and other parties, in September 2024. Although Trump and Witkoff have stepped back from day-to-day operations, listed as Cofounders Emeritus, the firm is 60% owned by a Trump business entity. This entity reportedly makes 75% of revenue from coin sales.
Trump's Evolving Crypto Policy
President Trump's stance on cryptocurrency has shifted from skepticism to active promotion. His administration has reversed Biden-era restrictions on crypto, encouraged investments from the White House, and signed legislation like the GENIUS Act to regulate stablecoins in the US. Trump has personally profited from World Liberty, declaring $57.3 million from the company in 2024, with expectations of higher figures in upcoming filings.
Links to Crime and Ethical Concerns
World Liberty's products include the $WLFI cryptocurrency, launched in October 2024, and the $TRUMP and $MELANIA memecoins in December 2024. These have amassed significant sales and trading fees. The USD1 stablecoin, backed by US treasury notes, has a market cap of $3.42 billion as of January 14, 2026.
However, the company faces ethical scrutiny. An analysis by The New York Times in May 2025 noted that World Liberty "eviscerated the boundary between private enterprise and government policy." The USD1 coin is integrated into Tron, a blockchain owned by Justin Sun, who has been linked to organized crime and investigated by the US Justice Department. The Trump administration has dropped charges against Sun, who met with the Trump family during a West Asia tour.
Illegal crypto activity on the Tron blockchain accounted for $6.148 trillion in 2024, according to TRM Labs. World Liberty has also engaged in mutual investment deals, raising concerns about political quid pro quo.
What Are Stablecoins?
Stablecoins are cryptocurrencies pegged to assets like fiat currencies or commodities, ensuring stable value without the volatility of Bitcoin. They allow for fast, cheap transactions and are used by crypto investors to park profits. Ownership is recorded in digital ledgers, reducing costs and processing times for cross-border payments.
Stablecoin use surged in 2025, with transaction volumes increasing by 72% globally to $33 trillion, despite IMF cautions. Bloomberg Intelligence estimates total stablecoin payment flows could reach $56 trillion by 2030.
This deal underscores Pakistan's strategic move into digital finance while highlighting the complex ties between global politics and cryptocurrency innovation.
