Pakistan has recently partnered with an affiliate of World Liberty Financial (WLF), the cryptocurrency platform linked to U.S. President Donald Trump’s family, to explore the integration and use of its USD1 stablecoin for cross-border payments and digital finance initiatives.
Pakistan’s Virtual Asset Regulatory Authority (PVARA) signed a Memorandum of Understanding (MoU) with SC Financial Technologies, a Delaware-registered firm affiliated with and described as a sister company to World Liberty Financial. SC Financial Technologies co-owns the USD1 stablecoin brand.
The agreement focuses on technical collaboration with Pakistan’s central bank, State Bank of Pakistan to integrate USD1 into the country’s regulated digital payments framework. This would allow it to operate alongside Pakistan’s existing digital currency infrastructure.
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Primary goals include exploring stablecoins for cross-border transactions, remittances, settlement, and foreign exchange processes—aiming to modernize payments, reduce friction in international transfers, and enhance efficiency.
The announcement came during a visit to Pakistan by Zach Witkoff, CEO of both World Liberty Financial and SC Financial Technologies. He met with senior officials, including Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb, and others.
A World Liberty Financial spokesperson emphasized that the deal could help reinforce the U.S. dollar’s status as the global reserve currency by promoting a “trusted, compliant” dollar-denominated stablecoin for digital payments and remittances.
This marks one of the first public sovereign partnerships for World Liberty Financial, which launched in September 2024 and introduced USD1 in March 2025. USD1 is a U.S. dollar-pegged stablecoin aiming for a 1:1 value with USD issued by World Liberty Financial. It is fully backed by U.S. dollars, short-term Treasuries, cash equivalents, and similar assets held in regulated institutions, with periodic third-party audits for transparency.
Each USD1 token in circulation is fully backed by an equivalent value (1:1) of high-quality, liquid assets. This ensures that holders can redeem tokens directly for U.S. dollars at par value, subject to any onboarding/KYC requirements for secondary market acquisitions.
Reserve Composition: The reserves primarily consist of: Short-term U.S. Treasury bills (T-bills) and other U.S. government securities. U.S. dollar cash deposits. Cash equivalents and similar highly liquid instruments e.g., U.S. Government Money Market Funds backed by the full faith and credit of the U.S. government.
These assets are low-risk, easily convertible to cash, and chosen to minimize volatility or counterparty risk while supporting rapid redemptions. All reserve assets are held and maintained by BitGo Trust Company, Inc. and/or affiliated BitGo entities— federally registered money services businesses and state-licensed transmitters.
BitGo handles issuance, redemptions, and provides the technical infrastructure. New USD1 tokens are minted when users deposit U.S. dollars or equivalent with the custodian. Tokens are burned upon redemption.
It operates on multiple blockchains including Ethereum, BNB Chain, Solana, and Tron for fast, low-cost global settlements.As of recent reports, USD1 has grown significantly, surpassing $3 billion in market capitalization/circulation in late 2025, positioning it as a mid-tier stablecoin with institutional adoption, prior use in large deals like Abu Dhabi’s MGX investment in Binance.
The deal aligns with Pakistan’s push toward digital finance innovation, including crypto regulation and remittances, a major economic driver. It occurs amid warming U.S.-Pakistan ties and global interest in regulated stablecoins under frameworks like the U.S. GENIUS Act.
World Liberty Financial is also pursuing a U.S. national trust bank charter for USD1 operations, which could further legitimize and expand its use. This is an exploratory MoU—not a full adoption commitment—but it signals Pakistan’s interest in testing stablecoins for real-world financial efficiency.