Pakistan Forges USD1 Stablecoin Payments Deal With WLFI-Linked Firm
Pakistan just cut a deal that could rewrite its financial playbook—partnering with a WLFI-linked company to launch USD1 stablecoin payments.
The Digital Leap
This isn't about dipping a toe in crypto waters. It's a full-scale strategic pivot. The government is directly backing a dollar-pegged digital currency for transactions, aiming to sidestep traditional banking bottlenecks and currency volatility in one move. Think of it as building a financial highway where money moves at internet speed.
Why It Matters
For a nation grappling with remittance flows and dollar liquidity, a state-sanctioned stablecoin is a potential game-changer. It promises faster, cheaper cross-border payments for millions, while giving the government a new tool for economic management—bypassing the old guard of correspondent banks that take their cut and their time.
The WLFI Factor
The partnership with a WLFI-connected entity adds a layer of intrigue. It signals Pakistan isn't just shopping for tech; it's seeking integration into a broader digital finance ecosystem. This could pave the way for everything from tokenized bonds to automated tax collection—if they can navigate the regulatory minefield.
The Bottom Line
Pakistan's move is a bold bet on digital sovereignty. It's a direct challenge to the slow, expensive legacy system, offering a glimpse of a future where national economies run on rails built with code, not concrete. Of course, watching a government embrace the very technology it once eyed with suspicion is a delicious irony—almost as ironic as bankers now having to explain what a stablecoin is to their clients.
Pakistan To Explore USD1 For Cross-Border Payments
On Wednesday, Pakistan announced it had signed a memorandum of understanding (MoU) with a crypto firm linked to the TRUMP Family’s main crypto business, World Liberty Financial.
According to a report by Reuters, the Pakistan Virtual Asset Regulatory Authority (PVARA) entered an agreement with SC Financial Technologies, a firm described as an affiliated entity of WLFI, to explore the use of its USD1 stablecoin for cross-border payments.
The memorandum is set to enable “dialogue and technical understanding around emerging digital payment architectures,” and was announced during WLFI founder and CEO Zach Witkoff’s visit to Pakistan.
Notably, Witkoff is also the CEO of SC Financial Technologies, which co-owns the USD1 stablecoin brand alongside World Liberty Financial, according to documentation on the stablecoin’s reserves reviewed by the news media outlet.
Under the agreement, the WLFI-linked company will collaborate with Pakistan’s central bank to integrate its USD 1 stablecoin into a regulated digital payments structure. A source involved in the deal detailed that this WOULD allow the token to operate alongside Pakistan’s own digital currency infrastructure.
It’s worth noting that PVARA officials have previously affirmed that the country will launch a national stablecoin as part of its strategy to modernize payments and support tokenized debt. Additionally, the central bank is developing a pilot for a central bank digital currency (CBDC).
“Our focus is to stay ahead of the curve by engaging with credible global players, understanding new financial models, and ensuring that innovation, where explored, is aligned with regulation, stability, and national interest,” said Pakistan’s Finance Minister Muhammad Aurangzeb.
WLFI Faces New Conflict Of Interest Concerns
The news comes as WLFI faces some scrutiny in the US. On Tuesday, US Senator Elizabeth Warren sent a letter to Comptroller of the Currency (OCC), Jonathan Gould, pressing the agency to halt its review of the bank charter application submitted by the Trump-linked company.
On January 7, World Liberty Financial applied with the OCC to operate as a national trust bank purpose-built for stablecoin services in the US. The MOVE is intended to facilitate the issuance of WLFI’s USD1 stablecoin. Moreover, it would allow the crypto company to provide custodial banking services and gain access to national payment networks under the OCC’s supervision.
The democratic senator cited fears she expressed in July, when she told newly appointed Jonathan Gould that “the OCC may soon be in the position where it has to review a stablecoin issuer application submitted by a company directly tied to President Trump and his family and to draft regulations that clearly influence the President’s finances.”
Unlike most of his predecessors, President Trump has not put his crypto ventures in a trust managed by an independent party, an October investigation stated, pointing out that instead, most of his businesses are owned by a revocable trust, of which he is the sole beneficiary, and managed by his son Donald Trump Jr.
According to the Tuesday letter, Warren’s concerns have gone from being “hypothetical,” as Gould reportedly called them, to being a reality. The senator argued that if the application is approved, the OCC would promulgate rules that “influence the profitability of the President’s company” and would also be responsible for “directly supervising and enforcing the law against the President’s company—and its competitors.”
Therefore, Warren requested that the OCC delay World Liberty Financial’s review until US President Donald Trump divests and eliminates all financial conflicts of interest involving himself or his family members and the company.
