Pakistan Explores Trump-Linked Stablecoin for Cross-Border Payments
Islamabad,Pakistan – January 18,2026 – In a move signaling a potential shift in its financial strategy,Pakistan has entered into an agreement with SC Financial Technologies,a firm affiliated with World Liberty Financial – the cryptocurrency venture linked to the family of former US president Donald Trump – to explore the use of its USD1 stablecoin for cross-border payments. The memorandum of understanding (MoU), announced on Wednesday, aims to integrate the stablecoin into pakistan’s regulated digital payment infrastructure, perhaps streamlining international transactions and bolstering the nation’s foreign exchange processes.
A First for World Liberty and a Warming of US-Pakistan Relations
This agreement marks one of the first publicly announced collaborations between World Liberty, launched in September 2024, and a sovereign nation. The timing coincides with a noticeable betterment in diplomatic ties between Pakistan and the United States, suggesting a broader context of economic cooperation. The pakistan Virtual Asset Regulatory Authority (PVARA) highlighted that the MoU will foster “dialog and technical understanding around emerging digital payment architectures.”
How the Partnership Will Work
according to sources involved in the deal, SC Financial Technologies will collaborate with the State Bank of Pakistan to integrate the USD1 stablecoin into a regulated framework.This integration will allow the stablecoin to function alongside Pakistan’s existing digital currency initiatives. Stablecoins, digital tokens designed to maintain a stable value – typically pegged to the US dollar – have gained significant traction in recent years as a bridge between conventional finance and the rapidly evolving world of cryptocurrency.
The Key Players: Zach Witkoff and SC Financial Technologies
The announcement followed a visit to Pakistan by Zach Witkoff, co-founder and CEO of both World Liberty and SC Financial Technologies. Witkoff, also the son of US special envoy Steve witkoff, engaged with key Pakistani stakeholders to discuss the potential of digital payment infrastructure and its impact on cross-border settlements. SC Financial Technologies, registered in Delaware, holds a co-ownership stake in the USD1 stablecoin brand, as documented in reserve reports from July 2025.
Finance Minister Muhammad Aurangzeb emphasized Pakistan’s proactive approach to financial innovation, stating, “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.”
The Rise of Stablecoins and the Trump connection
Stablecoins have experienced exponential growth in recent years, attracting increasing attention from regulators worldwide. The United States,under the Trump administration,implemented regulations perceived as favorable to the cryptocurrency sector,further fueling the growth of stablecoins. World Liberty, in particular, has reportedly contributed to a substantial increase in revenue for the trump Organization, especially from international sources. In May 2025,MGX,an Abu Dhabi investment firm,utilized the World Liberty stablecoin to acquire a $2 billion stake in Binance,the world’s leading cryptocurrency exchange.
Pakistan’s Digital Currency Ambitions
Pakistan has been actively exploring digital currency solutions to reduce reliance on cash and enhance the efficiency of cross-border payments,notably remittances – a vital source of foreign exchange for the country. The State Bank of Pakistan announced in July 2025 its plans to launch a pilot program for a central bank digital currency (CBDC) and is currently finalizing legislation to regulate virtual assets. This partnership with World Liberty represents another step in Pakistan’s journey towards a more digitized financial system.
What are stablecoins?
Stablecoins are cryptocurrencies designed to minimize price volatility. Unlike Bitcoin or Ethereum, which can experience significant fluctuations in value, stablecoins are typically pegged to a stable asset, such as the US dollar. This peg is maintained thru various mechanisms,including holding reserves of the underlying asset or using algorithmic stabilization techniques.
Why are Stablecoins Significant?
Stablecoins offer several advantages:
- Price Stability: They provide a less volatile choice to other cryptocurrencies.
- Faster Transactions: Transactions with stablecoins can be faster and cheaper than traditional banking methods.
- Accessibility: They can provide access to financial services for individuals who are unbanked or underbanked.
- Cross-Border Payments: They facilitate easier and more efficient cross-border transactions.
This collaboration between Pakistan and World Liberty Financial marks a significant growth in the intersection of cryptocurrency, international finance, and geopolitical relations. As Pakistan continues to navigate the evolving landscape of digital finance, this partnership could pave the way for a more efficient, transparent, and inclusive financial system.
