Pakistan has signed a memorandum of understanding with SC Financial Technologies, a US-based firm that Pakistani officials describe as affiliated with World Liberty Financial (WLF). The agreement sets up technical work on cross-border payments using WLF’s dollar-pegged stablecoin, USD1.
Pakistan’s Virtual Asset Regulatory Authority (PVARA) said the MoU will support structured dialogue on regulated digital payment architecture and settlement tools. Early reports said Pakistan’s finance ministry and central bank did not immediately respond to comment requests.
The MoU directs SC Financial Technologies to work with the State Bank of Pakistan on integrating USD1 into a regulated payments framework. Pakistan aims to test how a stablecoin could operate alongside the country’s planned digital currency infrastructure, rather than outside oversight.
Officials have highlighted cross-border flows as a key use case, given the role of remittances in Pakistan’s foreign exchange mix. In that context, stablecoin settlement could run at all hours, while regulators keep reporting, screening, and consumer safeguards in view.
The announcement also fits into Pakistan’s broader digital asset agenda. Reuters reported last month that Pakistan moved to formalize virtual asset activity and allowed major exchanges to begin steps toward local licensing.
The MoU coincided with a visit to Islamabad by Zach Witkoff, a Co-Founder and Chief Executive of World Liberty Financial and SC Financial Technologies. Reuters said he met Pakistani officials to discuss regulatory-compliant digital payments and cross-border financial technologies.
Public statements have framed the arrangement as exploratory. The parties have not published a rollout schedule, target corridors, or participating banks. The MoU structure typically enables pilots and evaluations before any scaled deployment.
Pakistan has engaged World Liberty before. Pakistan’s Prime Minister’s Office previously disclosed a letter of intent between World Liberty Financial and the Pakistan Crypto Council to support knowledge-sharing on emerging financial technology.
Pakistan’s central bank has said it is currently preparing a pilot for a digital currency and is finalizing legislation to regulate virtual assets. Officials have linked these efforts to goals that include reducing cash usage and modernizing payment systems.
On the US side, World Liberty has sought a deeper regulatory footprint for USD1. Reuters reported that a World Liberty unit applied to the Office of the Comptroller of the Currency to establish a national trust bank focused on stablecoin issuance, redemption, and custody.
The move comes as US policymakers continue shaping stablecoin oversight. The White House said President Trump signed the GENIUS Act on July 18, 2025, which set federal requirements for payment stablecoin issuers and marketing rules.
World Liberty’s own materials describe USD1 as redeemable 1:1 for US dollars and backed by cash and US government money market funds, while supporting multiple blockchains. Separately, public market trackers have reported a USD1 circulating supply in the multi-billion range.
Also Read: World Liberty Seeks U.S. Bank Charter to Expand USD1: A Shift in U.S. Stablecoin Banking?