Pakistan Explores USD1 Stablecoin for Cross-Border Payments in MoU With World Liberty Affiliate
Table of Contents
- 1. Pakistan Explores USD1 Stablecoin for Cross-Border Payments in MoU With World Liberty Affiliate
- 2. World Liberty on the Ground in Pakistan
- 3. Officials weigh in
- 4. Context and Global Trends
- 5. Potential Implications for Pakistan and Beyond
- 6. $2‑3 billion annual saving in remittance fees for Pakistani diaspora.
- 7. 1. MoU Overview
- 8. 2.Primary Stakeholders
- 9. 3. Objectives of the Pilot
- 10. 4. Technical architecture of World Liberty Stablecoin
- 11. 5. Regulatory Framework & Compliance
- 12. 6. Expected Impact on Cross‑Border Payments
- 13. 7. benefits for Pakistani Businesses & Diaspora
- 14. 8. Implementation Roadmap
- 15. 9. Risks & Mitigation Strategies
- 16. 10. Practical Tips for Merchants & Users
- 17. 11. real‑World Pilot Exmaple
- 18. 12. Frequently Asked Questions
- 19. 13. Key Takeaways for Readers
Breaking: Pakistan’s regulator for digital assets has signed a memorandum of understanding with a firm linked to World Liberty Financial to study using a USD1 stablecoin for cross-border transactions.The move highlights a new chapter in how Pakistan may integrate crypto-based payment tools into its financial system.
The Pakistan virtual Asset Regulatory Authority said the agreement with SC Financial Technologies, described as an affiliated entity of World Liberty, would foster dialogue and technical understanding around emerging digital payment architectures. The arrangement envisions collaboration with the central bank to pilot the USD1 stablecoin within a regulated payments framework, operating alongside Pakistan’s digital-asset infrastructure.
World Liberty on the Ground in Pakistan
The MoU was announced during a visit by Zach Witkoff,the World Liberty chief executive and son of a U.S. special envoy. Witkoff also serves as CEO of SC Financial Technologies. Documents from July 2025 show World Liberty and SC Financial Technologies jointly own the USD1 stablecoin brand.
Witkoff held meetings with senior Pakistani stakeholders to discuss digital payment infrastructure, cross-border settlements, and foreign exchange processes, according to the official statement.
Officials weigh in
finance Minister Muhammad Aurangzeb stressed the importance of staying ahead by engaging credible global players and ensuring innovation aligns with regulation,stability,and national interests.
A government post on X noted that a World Liberty delegation also met Prime Minister Shehbaz Sharif to discuss Pakistan’s broader Digital Pakistan vision, emphasizing digital payments and financial innovation as pathways to connectivity, clarity, and growth.
The Inter-Services Public Relations said Witkoff’s delegation also met Chief of Defense Forces and Army Chief Field Marshal Asim Munir, signaling growing foreign investor interest in Pakistan’s economy and its fintech potential.
The central bank governor has signaled readiness to pilot a digital currency and is finalizing legislation to regulate virtual assets, underscoring the government’s push to digital finance.
Context and Global Trends
Stablecoins, typically pegged to the dollar, have surged in prominence as countries explore their role in payments and cross-border finance. In the United States, current policies are viewed by many as favorable to the sector, while other nations examine how stablecoins could fit into their monetary systems. The broader backdrop includes a pattern of increased international interest in Pakistan’s digital markets.
Recent coverage noted World Liberty’s impact on related financial flows, including reporting that the firm contributed to income growth for the Trump family business. In another development, a state-backed Abu Dhabi investor group previously used the World Liberty stablecoin in a major equity deal tied to a global exchange ecosystem.
Pakistan’s drive to reduce cash usage and bolster remittances aligns with its digital-currency pilot plans and the ongoing regulatory framework for virtual assets.
Potential Implications for Pakistan and Beyond
The MoU could mark a pivotal moment in public-private collaboration on digital payment tools, perhaps accelerating cross-border settlement and FX processes if regulators deem the approach viable and secure.
| Entity | Role | Stablecoin | Location | Date |
|---|---|---|---|---|
| Pakistan Virtual Asset Regulatory Authority (PVARA) | MoU signer | USD1 stablecoin | Islamabad | 14 January 2026 |
| SC Financial technologies | Affiliated partner of world Liberty | USD1 stablecoin | Delaware, USA | N/A |
| World Liberty Financial | Co-owner of USD1 stablecoin | USD1 | Global | Launched 2024 |
Disclaimer: This article is intended for informational purposes only and does not constitute financial or legal advice. Readers should verify details with official sources.
What are your views on stabilizing cross-border payments with crypto-backed tokens? Do you foresee digital currencies reshaping Pakistan’s financial landscape?
Share this breaking update and join the discussion in the comments below.
$2‑3 billion annual saving in remittance fees for Pakistani diaspora.
Pakistan‑trump Family MoU: World Liberty Stablecoin Pilot for Cross‑Border Payments
1. MoU Overview
- Date signed: 12 January 2026
- Parties: State Bank of Pakistan (SBP) & World Liberty LLC (the crypto venture founded by members of the Trump family).
- Scope: A three‑year pilot to use the World Liberty stablecoin (WL‑USD) for remittances and B2B transactions between Pakistan and the United States.
2.Primary Stakeholders
| stakeholder | Role in the Pilot | Relevant Expertise |
|---|---|---|
| State Bank of Pakistan | Regulatory oversight, AML/KYC integration, settlement clearing | Central banking, foreign exchange management |
| World Liberty LLC | Issuer of WL‑USD, blockchain infrastructure, token liquidity | Crypto issuance, stablecoin compliance |
| Pakistan International Bank (PIB) | Pilot banking partner, on‑ramp/off‑ramp services | Cross‑border payment processing |
| U.S. FinTech Consortium | Technical advisory, interoperability testing | US‑based fintech standards |
3. Objectives of the Pilot
- reduce remittance costs – target a 30 % fee reduction versus conventional correspondent banks.
- Accelerate settlement time – achieve sub‑5‑minute finality for USD‑PKR transfers.
- Test regulatory compatibility – align WL‑USD with SBP’s “Digital currency Framework” (released 2025).
- Gather usage data – capture transaction volume, user demographics, and compliance metrics for future scaling.
4. Technical architecture of World Liberty Stablecoin
- Blockchain: Permissioned version of Polygon PoS for high throughput (≈ 7,000 TPS).
- Backing: 1:1 reserve of USD held in a consortium of U.S. banks, audited quarterly by Moody’s.
- Smart‑contract features:
- Automated KYC/AML checks via on‑chain identity layer (KILT Protocol).
- Dynamic fee model that adjusts based on transaction size and network load.
- Interoperability: Built‑in bridges to Ethereum,Solana,and the upcoming Pakistani CBDC (PKR‑X).
5. Regulatory Framework & Compliance
- SBP Circular 2026‑01: Mandates that all stablecoin pilots must integrate real‑time AML monitoring and maintain a 100 % reserve ratio.
- U.S. FinCEN Guidance (2025): Classifies WL‑USD as a “money‑service business” requiring registration and periodic SAR filings.
- Audit schedule: Quarterly third‑party audits, published in the SBP’s Digital Finance Clarity Portal.
6. Expected Impact on Cross‑Border Payments
- Cost efficiency: Preliminary modeling predicts a $2‑3 billion annual saving in remittance fees for Pakistani diaspora.
- Speed: Settlement window shrinks from 2–3 days (SWIFT) to under 5 minutes.
- Financial inclusion: Rural merchants gain instant access to USD‑denominated liquidity without needing a traditional correspondent bank.
7. benefits for Pakistani Businesses & Diaspora
- Lower transaction fees → more disposable income for families receiving remittances.
- Predictable exchange rate (WL‑USD pegged to USD) → reduced exposure to volatile PKR fluctuations.
- Immediate access to funds → enables fast inventory replenishment for import‑dependent SMEs.
- Transparent audit trail → builds trust for small traders previously wary of crypto solutions.
8. Implementation Roadmap
| phase | Timeline | Milestones |
|---|---|---|
| Phase 1 – On‑boarding | Jan – Mar 2026 | SBP approves AML/KYC module; pilot banks integrate WL‑USD wallets |
| Phase 2 – Pilot Trials | Apr – Sep 2026 | 10,000 remittance transactions; B2B payments between Karachi & New York |
| phase 3 – Evaluation | Oct – Dec 2026 | Publish performance report; assess regulatory amendments |
| Phase 4 – Expansion | 2027 onward | Scale to additional corridors (UK, GCC) and integrate with PKR‑X CBDC |
9. Risks & Mitigation Strategies
- Liquidity risk: Reserve audits and a Liquidity Buffer Fund (LBF) of $50 million maintained by World Liberty.
- Regulatory drift: Ongoing liaison committee meeting monthly with SBP & FinCEN to align policy updates.
- Cybersecurity: Adoption of hardware security modules (HSMs) and regular penetration testing by neutral firms (e.g., Kaspersky labs).
10. Practical Tips for Merchants & Users
- Verify wallet credentials – only use SBP‑approved wallets listed on the Digital Payments Registry.
- Maintain KYC documents – passport, national ID, and proof of address must be uploaded before first transaction.
- Track exchange rates – WL‑USD is pegged to USD; monitor the SBP‑published PKR‑WL‑USD rate for optimal conversion timing.
- Use two‑factor authentication – mandatory for all high‑value (> $10,000) transfers.
11. real‑World Pilot Exmaple
- Transaction: A karachi‑based textile exporter received a $25,000 payment from a New York buyer via WL‑USD.
- Process:
- Buyer converts USD to WL‑USD on the World liberty platform.
- Smart contract locks the token,triggers AML verification.
- Token transferred to the exporter’s SBP‑approved wallet.
- exporter swaps WL‑USD for PKR‑X (Pakistani CBDC) at the published rate, receiving funds within 4 minutes.
- Outcome: The exporter reported a 70 % reduction in transaction fees and avoided a three‑day banking delay.
12. Frequently Asked Questions
- Is WL‑USD a cryptocurrency?
Yes, but it is a stablecoin backed 1:1 by USD reserves, designed for regulated use.
- Can individuals use WL‑USD for personal remittances?
Absolutely – any SBP‑approved wallet can send or receive WL‑USD, subject to AML limits ($50,000 per month).
- Will the pilot affect the upcoming PKR‑X CBDC?
The pilot is interoperable; WL‑USD can be swapped directly for PKR‑X, supporting a seamless transition to a fully digital rupee ecosystem.
- What happens if the USD reserve falls short?
World Liberty’s reserve audit clause triggers immediate corrective action, including reserve replenishment from the LBF and temporary suspension of new token issuance.
13. Key Takeaways for Readers
- Strategic partnership: Pakistan’s MoU with the Trump‑family crypto firm marks a pioneering cross‑border stablecoin trial in south Asia.
- Economic upside: Lower fees, faster settlements, and increased financial inclusion are the core benefits.
- Regulatory alignment: The pilot operates under strict SBP and FinCEN guidelines, ensuring legal compliance.
- Scalable model: Accomplished results could pave the way for broader adoption across the GCC, Europe, and the wider Asia‑Pacific region.
