KARACHI, Jan 9 (Reuters) - Pakistan has signed a deal with a company tied to World Liberty Financial, the primary cryptocurrency venture of U.S. President Donald Trump's family, to consider employing World Liberty's stablecoin for international payments, according to a source familiar with the agreement on Wednesday.
The arrangement marks one of the initial publicly disclosed partnerships between World Liberty, a cryptocurrency finance platform established in September 2024, and a national government. This development occurs as relations between Pakistan and the United States show signs of improvement.
As per the agreement, WLF will collaborate with Pakistan's central bank to incorporate its USD1 stablecoin into a regulated digital payments framework, enabling the token to function within Pakistan's existing digital currency systems, the source stated.
No additional specifics were provided regarding the deal with SC Financial Technologies, an obscure entity associated with World Liberty. Pakistan is anticipated to formally announce the agreement later Wednesday during a visit by World Liberty CEO Zach Witkoff to Islamabad, the person added.
Pakistan's finance ministry and central bank have not yet commented on requests for information.
Stablecoins, digital tokens usually linked to the U.S. dollar, have seen their market value expand significantly in recent years. During Trump's administration, the U.S. implemented federal regulations generally viewed as favorable to the cryptocurrency industry, prompting nations globally to assess stablecoins' possible applications in payment and financial infrastructures.
World Liberty contributed to a notable rise in income for the Trump Organization, the family's business, including from international sources, in the first half of the previous year, Reuters reported in October. In May last year, MGX, an Abu Dhabi state-controlled investment firm, utilized the World Liberty stablecoin to acquire a $2 billion equity share in Binance, the world's largest cryptocurrency exchange.
Pakistan has been investigating digital currency initiatives as it aims to decrease cash reliance and enhance cross-border payment mechanisms like remittances, a vital foreign exchange contributor. The central bank governor noted in July that preparations were underway for a digital currency trial and that legislation to oversee virtual assets was being finalized.