Pakistan Signs MoU with Trump-Linked WLFI to Integrate ‘USD1’ Stablecoin
Islamabad pivots from its 2018 crypto ban, signing a deal with World Liberty Financial to test the USD1 stablecoin for remittances as WLFI tokens jump 9%.
Pakistan’s Finance Ministry signed a Memorandum of Understanding (MoU) Wednesday with SC Financial Technologies, an affiliate of the Trump family’s World Liberty Financial (WLFI), to pilot the protocol’s dollar-pegged stablecoin for national cross-border payments. The agreement, finalized during a visit to Islamabad by WLFI CEO Zach Witkoff, marks the crypto venture’s first formal entry into sovereign financial infrastructure.
Markets reacted immediately. The WLFI governance token jumped 9% to $0.18 following the announcement, pushing its fully diluted valuation near $18 billion.
The Remittance Play
Under the terms of the deal, Pakistan’s Virtual Assets Regulatory Authority (PVARA) will collaborate with SC Financial Technologies to test the integration of the USD1 stablecoin into the country’s banking rails. The primary objective is streamlining remittances, a critical economic lifeline for Pakistan, which received over $27 billion in inflows last fiscal year.
The pilot aims to bypass traditional correspondent banking friction, allowing USD1 to operate alongside Pakistan’s existing digital payment systems. Finance Minister Muhammad Aurangzeb, who oversaw the signing, framed the move as a pragmatic pivot:
“Our focus is to stay ahead of the curve by engaging with credible global players… ensuring that innovation is aligned with regulation, stability, and national interest.”
Geopolitical & Regulatory U-Turn
The agreement signals a sharp reversal of Pakistan’s historic hostility toward digital assets. The State Bank of Pakistan (SBP) famously banned crypto interactions in 2018. The current administration, however, has aggressively courted the sector, establishing PVARA and reportedly drafting legislation to legalize digital asset trading.
The deal also carries heavy geopolitical weight. Zach Witkoff is the son of Steve Witkoff, President Trump’s Special Envoy to the Middle East. The direct engagement between a Trump-linked entity and Islamabad suggests Washington is leveraging private-sector crypto infrastructure to deepen economic ties in South Asia, potentially countering Chinese fintech influence in the region.
No timeline for a full public rollout of USD1 was provided.
