Pakistan has reportedly signed an agreement with a company connected to World Liberty Financial, the crypto venture linked to the family of US President Donald Trump, to explore the use of its dollar-pegged stablecoin for cross-border payments.
The agreement involves SC Financial Technologies, a little-known company linked to World Liberty Financial, and marks one of the first publicly known partnerships between Trump-linked crypto ventures and a sovereign state, Reuters reported on Wednesday, citing a source familiar with the matter.
Under the arrangement, World Liberty Financial will collaborate with Pakistan’s central bank to integrate its USD1 stablecoin into a regulated digital payments framework. The token would operate alongside Pakistan’s emerging digital currency infrastructure, potentially supporting cross-border transactions such as remittances, the source told Reuters.
Specific terms of the agreement were not disclosed, and details surrounding SC Financial Technologies remain limited.
Related: Pakistan may be a crypto leader in 5 years at current pace: CZ
Pakistan to announce stablecoin deal during Witkoff visit
Pakistan is expected to formally announce the deal later on Wednesday during a visit by World Liberty chief executive Zach Witkoff to Islamabad, according to the report.
World Liberty has already attracted attention for its role in major transactions. In May last year, MGX, a state-backed investment firm from Abu Dhabi, used World Liberty’s stablecoin to facilitate the purchase of a $2 billion equity stake in Binance, the world’s largest cryptocurrency exchange.
Earlier this week, World Liberty also launched World Liberty Markets, a new onchain lending and borrowing platform built around its USD1 stablecoin and WLFI governance token. The platform allows users to post crypto collateral such as Ether (ETH), tokenized Bitcoin (BTC) and major stablecoins.
Related: Bitcoin, blockchain should form Pakistan’s new financial rail, minister says
Pakistan pushes to become global crypto hub
Pakistan has been steadily advancing its digital finance agenda as it seeks to become a major global crypto hub.
The country has taken major steps to formalize its crypto ecosystem, including establishing the Pakistan Virtual Assets Regulatory Authority, permitting crypto exchanges Binance and HTX to operate in the country, building a Bitcoin reserve, and exploring real-world asset tokenization to attract foreign investment and boost liquidity.
Magazine: Bitget’s Gracy Chen is looking for ‘entrepreneurs, not wantrepreneurs’
Read the full article here