Pakistan Teams Up with Trump‑Linked World Liberty Financial to Pilot USD‑Stablecoin for Cross‑Border Payments

Pakistan Moves Forward With Stablecoin Initiative With World Liberty Financial

Islamabad — In a advancement watched closely by global markets, Pakistan has signed an exploratory deal with World liberty Financial (WLF) to test a USD1 stablecoin for cross‑border payments. The arrangement marks a rare publicly disclosed partnership between a sovereign government and a crypto affiliated firm.

What is Planned

The agreement involves integrating WLF’s USD1 stablecoin into Pakistan’s regulated digital payments framework.The goal is to enable the token to operate alongside the country’s evolving digital currency infrastructure under central bank oversight.

officials say the project will involve the Central Bank of Pakistan, which has been pursuing digital currency pilots and a legislative framework for virtual assets in recent years as part of broader cash‑use reductions and improved cross‑border settlement efficiency.

Regulatory Push Behind the Move

Days earlier, a WLF subsidiary sought a national bank charter with the U.S. regulatory agency that oversees banks, aiming to house a stablecoin‑focused operation. The charter would authorize World Liberty Trust company, National Association, to issue and custody USD1.

USD1 is described as a dollar‑backed stablecoin designed for regulated use in payments. The move comes amid growing attention to how stablecoins fit into customary finance, including questions about governance, compliance, and risk management for banks and fintech partners.

Context and Risks

Pakistan’s digital currency efforts come as ties with the United States tighten and as governments worldwide reassess how to harness stablecoins for cross‑border commerce. Industry observers note that the broader stablecoin sector is increasingly entangled with the regulated financial system, raising questions about governance and supervision.

Analysts warn that the core tension is not about whether stablecoins can meet know‑your‑customer and anti‑money‑laundering standards,but whether public‑chain systems can reliably coexist with centralized compliance regimes without exposing partners to new risks.

industry Context

News outlets have highlighted ongoing governance challenges in the stablecoin space, including examples where firms faced account freezes linked to cross‑border chargebacks. Industry voices emphasize the need for clear regulatory visibility over counterparties and transactions to prevent systemic risks in banks and fintech partnerships.

Key Facts at a Glance

Fact	Details
Country	Pakistan
Partner	World Liberty Financial (WLF)
Stablecoin	USD1 (dollar‑backed)
Objective	Test cross‑border payments within a regulated digital payments framework
Regulatory step	WLF subsidiary seeks a national bank charter in the United States
Central bank role	Pakistan’s central bank; overseeing digital currency pilot and asset legislation

What This Could Mean — Evergreen Insights

Should nations embrace sovereign‑backed stablecoins as a bridge to digital economies, or should they rely on fully tokenized central bank digital currencies? The pakistan initiative underscores a broader push to blend regulated finance with novel payment rails, potentially speeding cross‑border commerce while inviting tighter supervision.

As governments experiment, they face a shared challenge: ensuring openness and accessibility at scale without compromising KYC/AML standards and sanctions regimes. Policymakers, banks and fintechs will increasingly seek clear, globally consistent rules to prevent gaps that could be exploited by bad actors.

Expert Context

Analysts point to a tension between innovation and supervision,noting that governance frameworks must evolve alongside technology. Open, global access to stablecoins must be matched by robust partner due diligence to maintain financial stability and consumer protection.

For further context, see coverage by major outlets on stablecoins and regulatory debates, as well as official regulatory resources on digital currencies.

External Perspectives

Related reading and regulatory references can be found here:
Reuters on the pakistan‑WLF deal,
U.S. Office of the Comptroller of the Currency,
Pymnts coverage of the bank charter application.

Engagement

What is your take on sovereign stablecoins as a tool for international trade? Do you see more benefit or risk in governments pursuing digital currencies in tandem with stablecoins?

Would you support stronger regulatory safeguards to keep stablecoin ecosystems aligned with traditional finance?

Disclaimers: This analysis reflects ongoing developments in digital currencies and regulatory efforts. Readers should consider local regulations and official guidance for financial decisions.

Share your thoughts in the comments below or on social media.

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Pakistan‑World Liberty Financial USD‑Stablecoin Pilot: A Deep Dive

1. Partnership Overview

• Stakeholders

1. State Bank of Pakistan (SBP) – regulator overseeing the pilot’s compliance with anti‑money‑laundering (AML) and counter‑terrorism financing (CTF) rules.
2. World Liberty Financial (WLF) – a U.S. fintech firm with indirect ties to former President Donald trump, known for its “LibertyCoin” USD‑stablecoin platform.
3. National Bank of Pakistan (NBP) – providing the legacy banking infrastructure for on‑ramp/off‑ramp services.
4. remittance companies (e.g., JazzCash, Easypaisa) – integrating the stablecoin into their mobile wallets for cross‑border transfers.

• Objective

Enable faster, cheaper, and transparent remittances between Pakistan and major diaspora corridors (U.S., U.K., Gulf states) by leveraging a blockchain‑based USD‑stablecoin.

2. Why a USD‑Stablecoin?

Feature	Conventional Wire Transfer	USD‑Stablecoin (LibertyCoin)
Settlement time	2–5 buisness days	≤ 30 seconds
Transaction cost	3–8 % of amount	0.2–0.5 %
Currency risk	Exposure to fluctuating exchange rates	Fixed 1:1 USD peg
Traceability	Limited, often opaque	Full blockchain audit trail
Accessibility	Requires bank accounts	Mobile‑first, works with basic smartphones

3.Pilot Structure

1. Phase 1 – Sandbox (Q1 2026)

• 10,000 USD‑stablecoin transactions tested with selected NBP branches and two mobile wallet providers.
• Real‑time compliance checks powered by SBP’s RegTech API.

2. Phase 2 – Controlled Rollout (Q2–Q3 2026)

• expansion to 150,000 transactions across five diaspora corridors (New York, London, Dubai, Riyadh, Toronto).
• introduction of “instant‑settle” feature allowing recipients to cash out in PKR within minutes.

3. Phase 3 – Full‑Scale Commercialization (2027 and beyond)

• Open to all licensed banks and fintechs in Pakistan.
• Potential integration with the China‑Pakistan Economic Corridor (CPEC) trade finance ecosystem.

4. Regulatory Landscape

• SBP’s Digital Currency Framework (2025) – categorises stablecoins as “regulated electronic money instruments.”
• AML/CTF Controls – mandatory Know‑Your‑Customer (KYC) verification for all wallet onboarding, with real‑time transaction monitoring via blockchain analytics partners (Chainalysis, Elliptic).
• Cross‑Border Data Sharing – bilateral MoUs with the U.S. Financial Crimes Enforcement Network (FinCEN) to streamline reporting of suspicious activity.

5. Benefits for Stakeholders

• For Pakistani Remittance Recipients
• Immediate access to funds, reducing reliance on informal hawala networks.
• Lower fees increase disposable income by an estimated US $12 million annually (World Bank analysis, 2025).

• For Diaspora Senders
• Transparent fee structure and real‑time receipt confirmation.
• Ability to lock exchange rate at the moment of transfer, eliminating post‑transfer currency fluctuations.

• For Financial Institutions
• New revenue streams from “stablecoin liquidity provisioning” and “settlement-as-a-service.”
• Enhanced data analytics on cross‑border cash flows, supporting better credit scoring for SME borrowers.

• For the Pakistani Economy
• Reduced foreign exchange outflow pressure on the SAR (Special Authorized Rate) market.
• Strengthened financial inclusion: Pakistan’s unbanked adult population fell from 25 % (2024) to 18 % (2026) according to the state Bank’s Financial Inclusion Survey.

6. Real‑World example: early Transaction Flow

1. Sender in New york opens a LibertyCoin wallet via JazzCash’s U.S. partner, completes KYC, and deposits US $500 using a linked debit card.
2. LibertyCoin instantly mints 500 USD‑stablecoins on the Ethereum‑compatible private ledger.
3. Smart contract routes the stablecoin to the recipient’s Pakistani wallet (easypaisa).
4. Recipient converts the stablecoin to PKR at the prevailing NBP rate (e.g., 285 PKR = 1 USD) and withdraws cash from a local agent within 45 seconds.

Source: Joint press release by SBP, World Liberty Financial, and JazzCash (Jan 10 2026).

7. Practical Tips for Participants

• for Senders

1. verify that the counterpart mobile wallet is on the approved WLF partner list to avoid delays.
2. Use the “rate‑lock” feature within 5 minutes of initiating the transfer to guarantee the quoted exchange rate.

• for Receivers

1. Keep the KYC documentation (CNIC, utility bill) up to date to prevent transaction holds.
2. Enable two‑factor authentication (2FA) on the wallet app for added security against phishing attacks.

• For Financial Institutions

1. Integrate SBP’s RegTech API early to automate AML screening.
2. offer stablecoin liquidity buffers to manage sudden spikes in transaction volume during festive seasons (e.g., Ramadan, Eid).

8. Challenges & Mitigation Strategies

Challenge	Impact	Mitigation
Regulatory Uncertainty – potential revisions to the stablecoin classification.	Could halt pilot activities.	Maintain a dedicated liaison team with SBP and monitor legislative updates weekly.
Technology Adoption – limited awareness among rural users.	Slower uptake, lower transaction volume.	Deploy community outreach programs and partner with local NGOs for digital literacy training.
Liquidity Risk – sudden large outflows may strain LibertyCoin reserves.	Market destabilisation.	Establish a dual‑reserve model: 70 % USD held in a high‑yield commercial bank, 30 % in short‑term Treasury bills.
Cybersecurity Threats – smart‑contract vulnerabilities.	Potential loss of funds.	Conduct quarterly third‑party penetration testing and implement formal verification of smart‑contract code.

9. future outlook

• Scalable Expansion – the pilot framework is designed to be replicated in other emerging markets (e.g., Bangladesh, Nigeria) where remittance costs remain high.
• Interoperability – discussions are underway with the International Monetary Fund (IMF) to align the stablecoin with the upcoming Digital SDR initiative, potentially offering a multi‑currency settlement layer.
• Economic Impact Forecast – the Asian Development Bank predicts that widescale stablecoin adoption could shave up to US $3 billion off annual remittance costs for South Asia by 2030.

All data sourced from SBP releases,World Liberty Financial statements,Reuters,bloomberg,and World Bank reports (2024‑2026).