Pakistan signs MoU with SC Financial Technologies to explore using stablecoin USD1
Pakistan has signed a memorandum of understanding (MoU) with SC Financial Technologies, a US-based company described by Pakistani officials as affiliated with World Liberty Financial (WLF), to explore cross-border payments using WLF’s dollar-pegged stablecoin, USD1.
Pakistan’s Virtual Asset Regulatory Authority (PVARA) said the agreement establishes a framework for technical collaboration and structured dialogue on regulated digital payment systems and settlement tools. Officials said the initiative is focused on testing stablecoin use within regulatory oversight rather than outside the formal financial system. Pakistan’s finance ministry and central bank did not immediately comment on the development.
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Under the MoU, SC Financial Technologies will work with the State Bank of Pakistan to assess how USD1 could be integrated into a regulated payments framework. Authorities aim to examine whether stablecoin-based settlements can complement Pakistan’s planned digital currency infrastructure, particularly for cross-border transactions.
Remittances have been highlighted as a key potential use case, given their importance to Pakistan’s foreign exchange inflows. Stablecoin settlement could enable round-the-clock transfers while allowing regulators to maintain reporting standards, compliance checks, and consumer protections.
The agreement aligns with Pakistan’s broader push to formalize digital asset activity. Last month, Reuters reported that the country took steps to regulate virtual assets and permitted major crypto exchanges to begin the process of obtaining local licenses.
The MoU coincided with a visit to Islamabad by Zach Witkoff, co-founder and chief executive of World Liberty Financial and SC Financial Technologies. According to Reuters, Witkoff met Pakistani officials to discuss regulatory-compliant digital payments and cross-border financial technologies. Officials have described the arrangement as exploratory, with no timeline, corridors, or participating banks announced so far.
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Pakistan has previously engaged with World Liberty Financial. The Prime Minister’s Office earlier disclosed a letter of intent between World Liberty Financial and the Pakistan Crypto Council focused on knowledge-sharing in emerging financial technologies.
In parallel, Pakistan’s central bank is preparing a pilot for a central bank digital currency (CBDC) and finalizing legislation to regulate virtual assets, part of a broader effort to modernize the payments system and reduce cash usage.
On the US side, World Liberty Financial has been seeking a stronger regulatory footing 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. This comes amid evolving US oversight of stablecoins, following the signing of the GENIUS Act in July 2025, which set federal requirements for payment stablecoin issuers.
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World Liberty describes USD1 as a stablecoin redeemable one-to-one for US dollars and backed by cash and US government money market funds, with support across multiple blockchains. Public market trackers estimate the token’s circulating supply to be in the multi-billion-dollar range.
Source: https://www.analyticsinsight.net/