Pakistan has signed an agreement with a firm linked to World Liberty Financial, the crypto venture associated with the family of U.S. President Donald Trump, to explore the use of a dollar-pegged stablecoin for cross-border payments, according to a source involved in the deal. The move marks one of the first known instances of a sovereign state formally engaging with World Liberty’s digital finance platform.
The agreement comes amid a broader warming of relations between Islamabad and Washington and as Pakistan accelerates efforts to modernise its financial system. World Liberty Financial was launched in September 2024 and has rapidly gained prominence, partly due to its close association with the Trump family and favourable regulatory signals from the U.S. government under Trump.
Details of the Agreement
Under the agreement, World Liberty Financial will work with Pakistan’s central bank to integrate its USD1 stablecoin into a regulated digital payments framework. The stablecoin would operate alongside Pakistan’s own digital currency infrastructure, allowing authorities to test its use for cross-border transactions within an official regulatory environment.
The deal was struck through SC Financial Technologies, a little-known company linked to World Liberty Financial. While financial and operational specifics were not disclosed, Pakistan is expected to formally announce the agreement during a visit to Islamabad by World Liberty CEO Zach Witkoff. Pakistan’s finance ministry and central bank declined to comment ahead of the announcement.
Why It Matters
The agreement signals a potentially significant shift in how Pakistan approaches cross-border payments, particularly remittances, which are a vital source of foreign exchange for the country. Stablecoins, typically pegged to the U.S. dollar, are increasingly seen as a faster and cheaper alternative to traditional banking channels, especially for international transfers.
For World Liberty Financial, the partnership offers early validation of its platform at the sovereign level, strengthening its credibility as governments begin exploring regulated uses of private stablecoins. The deal also underscores how U.S. regulatory changes under Trump have emboldened the global stablecoin sector.
Political and Regulatory Context
World Liberty Financial has played an increasingly visible role in the Trump family’s business interests. Reuters previously reported that the platform fuelled a sharp rise in income for the Trump Organization, including from foreign entities. Last year, Abu Dhabi’s state-backed investment firm MGX used the World Liberty stablecoin to acquire a $2 billion stake in Binance, highlighting its growing role in large-scale international transactions.
In Pakistan, authorities have been laying the groundwork for digital currency adoption as part of broader financial reforms. The central bank has said it is preparing a pilot digital currency programme and finalising legislation to regulate virtual assets, reflecting a cautious but deliberate approach to crypto integration.
Geopolitical Undertones
The timing of the agreement is notable given improving U.S.-Pakistan relations after years of strain. While officials have not explicitly linked the deal to diplomacy, the involvement of a Trump-linked firm in a sovereign financial initiative is likely to attract attention in both Washington and Beijing, particularly as countries compete over influence in emerging digital finance standards.
The partnership may also place Pakistan at the centre of a wider debate over whether private, dollar-linked stablecoins could extend U.S. financial influence abroad without direct state involvement.
Analysis
This deal reflects a convergence of technology, finance and geopolitics rather than a simple payment innovation. For Pakistan, the attraction lies in efficiency and access: stablecoins offer a way to modernise remittances and reduce reliance on costly intermediaries at a time of persistent dollar shortages. Yet partnering with a Trump-linked platform also carries political and regulatory risks that Islamabad will need to manage carefully.
From a neorealist perspective, stablecoins are emerging as instruments of monetary influence. A dollar-pegged token integrated into a sovereign payment system effectively extends the reach of the U.S. financial ecosystem, even when operated by a private entity. While Pakistan gains short-term utility, it may also deepen structural dependence on dollar-based systems, reinforcing existing asymmetries in global finance rather than disrupting them.
With information from Reuters.
