Pakistan's government announced it has signed a memorandum of understanding with SC Financial Technologies, an entity affiliated with World Liberty Financial — the cryptocurrency venture tied to U.S. President Donald Trump's family — to explore integrating the firm's dollar-pegged USD1 stablecoin into the country's digital payments infrastructure for cross-border transactions.
What Happened: Stablecoin Partnership Deal
The Pakistan Virtual Asset Regulatory Authority disclosed the agreement on Wednesday, describing SC Financial Technologies as an "affiliated entity" of World Liberty.
The deal will enable "dialogue and technical understanding around emerging digital payment architectures," the regulator said.
Zach Witkoff, co-founder and chief executive of World Liberty, traveled to Pakistan for the signing.
He is also CEO of SC Financial Technologies, a Delaware-registered company that co-owns the USD1 stablecoin brand with World Liberty, according to documentation on the stablecoin's reserves from July 2025.
Under the agreement, SC Financial Technologies will work with Pakistan's central bank to integrate USD1 into a regulated digital payments structure. The stablecoin would operate alongside Pakistan's own digital currency infrastructure, according to a source involved in the negotiations.
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Why It Matters: Sovereign State Adoption
This represents one of the first publicly announced partnerships between World Liberty, which launched in September 2024, and a national government.
"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," said Finance Minister Muhammad Aurangzeb.
Pakistan has been pursuing digital currency initiatives to reduce cash usage and improve remittance flows, a critical source of foreign exchange.
The central bank governor said in July the country was preparing to launch a digital currency pilot and is finalizing legislation to regulate virtual assets.
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