Pakistan has entered into an agreement with SC Financial Technologies to explore cross-border payments utilizing the USD1 stablecoin. This partnership signifies a collaboration between the South Asian nation and a company connected to World Liberty Financial, a cryptocurrency venture associated with U.S. President Donald Trump's family.
The arrangement involves the integration of the dollar-pegged token into Pakistan's regulated digital payments infrastructure. World Liberty Financial will collaborate with Pakistan's central bank to develop a framework that will support remittances and other international transactions using the USD1 token.
Information regarding SC Financial Technologies is limited, as the company maintains a low public profile despite its affiliation with World Liberty Financial. Neither party involved in the deal has publicly disclosed the specific financial terms of the agreement with Pakistan.
Pakistan is scheduled to formally announce this partnership during a visit to Islamabad by World Liberty chief executive Zach Witkoff. This deal represents one of the first publicly disclosed collaborations between cryptocurrency ventures linked to the Trump family and a sovereign government.
Previous Utility of USD1 Stablecoin
The USD1 stablecoin has previously demonstrated its utility in significant financial transactions beyond this arrangement with Pakistan. In May, the Abu Dhabi state-backed investment firm MGX utilized World Liberty's stablecoin to complete a $2 billion equity purchase in Binance, the operator of the world's largest cryptocurrency trading platform.
World Liberty Financial's Recent Developments
World Liberty Financial recently launched World Liberty Markets, an on-chain lending platform built around the USD1 stablecoin and its WLFI governance token. This new borrowing and lending service allows users to deposit Ethereum, tokenized Bitcoin, and major stablecoins as collateral.
Pakistan's Push Towards a Crypto Hub
Pakistan has been actively accelerating its efforts to establish itself as a global cryptocurrency hub through various regulatory initiatives. The government has established the Pakistan Virtual Assets Regulatory Authority and has granted operating permissions to major exchanges. Additionally, the nation is exploring strategies for Bitcoin reserve creation and the tokenization of real-world assets.
As part of its efforts to formalize its digital asset ecosystem, Pakistan has permitted Binance and HTX to seek cryptocurrency exchange licenses. These measures are designed to attract foreign investment and enhance market liquidity while Pakistan continues to build comprehensive virtual asset infrastructure.