Pakistan has taken a significant step to keep pace with the transformation in global payment systems. The country has signed a formal Memorandum of Understanding (MoU) to evaluate the use of USD1, a stablecoin developed by World Liberty Financial, in cross-border payments. The agreement is seen as part of Pakistan's goal to strengthen its digital finance infrastructure and make international money transfers faster, more transparent, and more cost-effective.
Digital Payment Infrastructure on the Agenda with World Liberty Financial
According to a statement by the Pakistan Virtual Assets Regulatory Authority (PVARA), the agreement was signed between the Ministry of Finance and World Liberty Financial. The authority stated that the collaboration will focus particularly on the role of stablecoins in cross-border transactions and aims at technical dialogue and information sharing on digital payment architectures. Within this framework, the possibility of integrating USD1 with Pakistan's already established regulated digital payment infrastructure will be discussed.
Under the agreement, World Liberty Financial plans to work with the Reserve Bank of Pakistan to make USD1 compatible with the country's official payment systems. According to information reported by Reuters, this integration will proceed in parallel with Pakistan's own digital currency projects. Thus, stablecoin-based payments can be positioned as a complementary element to the existing banking and digital currency infrastructure. USD1 is backed one-to-one with US dollars and short-term US Treasury bonds, according to information on World Liberty Financial's website. The company emphasizes that the reserves are regularly audited by independent third parties. The stablecoin, launched in March 2025, can be used on 10 different blockchain networks, including Ethereum, Solana, and Tron. In December 2025, Binance, the world's largest cryptocurrency exchange, added trading pairs for USD1 to its platform. This agreement with Pakistan coincides with a significant period for World Liberty Financial. The company's subsidiary, WLTC Holdings LLC, recently announced its intention to establish a national trust bank focused on USD1 operations by applying to the US Office of the Comptroller of the Currency (OCC). This step aims to consolidate stablecoin issuance, custody, and conversion processes under a single federally overseen structure. The company also launched a new DeFi platform focused on lending and borrowing, called World Liberty Markets. The platform reportedly reached over $50 million in locked assets in a short time. In Pakistan, this collaboration is seen as part of a broader strategy strengthening the country's digital finance vision. Annual remittance revenues exceeding $38 billion, a rapidly growing digital economy, and millions of crypto users have the potential to transform Pakistan into a regional digital payment hub. Finance Minister Muhammad Aurangzeb emphasized that innovative financial models will only be considered if they are compatible with regulation, stability, and national interests.
