Pakistan Partners with World Liberty Financial on USD1 Stablecoin Integration

Source: CoinEdition Original Title: The Central Bank of Pakistan Will Partner with WLFI Original Link:

Key Highlights

• Pakistan has signed an agreement to explore using USD1 stablecoin issued by World Liberty Financial (WLFI)
• The deal integrates the stablecoin into a central bank-regulated payments framework
• This marks one of WLFI’s first disclosed agreements with a sovereign state

Partnership Details

Pakistan has signed an agreement with World Liberty Financial to explore the use of its USD1 stablecoin for cross-border payments. Under the agreement, World Liberty Financial will work with the State Bank of Pakistan to integrate the stablecoin into a regulated digital payments framework.

The structure allows USD1 to operate alongside Pakistan’s own digital currency plans rather than replace them. The agreement is expected to be announced publicly during a visit by World Liberty CEO Zach Witkoff to Islamabad.

One of World Liberty’s First Sovereign Deals

The deal marks one of the first publicly disclosed partnerships between World Liberty Financial and a sovereign state. World Liberty launched in September 2024 and is closely tied to major crypto business interests.

The partnership comes as ties between Pakistan and the United States warm and as stablecoins gain regulatory acceptance. New US federal rules introduced in 2025 have lowered barriers for stablecoin usage in payments and financial infrastructure.

World Liberty’s stablecoin has already been used in large-scale transactions. In May last year, Abu Dhabi state-backed investor MGX used the token to purchase a $2 billion equity stake in a major crypto exchange.

Pakistan Accelerates Digital Asset Strategy

Pakistan has been actively expanding its crypto footprint. The country sees crypto as a tool to reduce cash usage and improve cross-border payments, particularly remittances, which remain a critical source of foreign exchange.

In July, the central bank confirmed it was preparing a pilot for a digital currency and finalizing legislation to regulate crypto. In December 2025, regulators granted preliminary approvals to certain global exchanges, allowing them to register locally and prepare for full operating licenses.

The finance ministry has also signed a memorandum of understanding with a major exchange to explore tokenizing up to $2 billion in government assets, including bonds, treasury bills, and commodity reserves.

Adoption Speed Raises Risk Questions

Pakistan’s rapid push into crypto has raised concerns among officials and analysts. Around 17.5 million Pakistanis are estimated to hold close to $5 billion in digital assets.

Critics warn that regulatory frameworks remain incomplete and that decisions are moving faster than institutional capacity. Risks include higher exposure to volatility, unclear fiscal oversight, and potential scrutiny from credit rating agencies if tokenized assets sit outside traditional debt controls.