Pakistan has quietly moved to test the waters with a Trump-linked crypto firm, signing a memorandum of understanding to explore using a USD-pegged stablecoin for cross-border payments and broader digital payment innovation. What happened Pakistan’s Virtual Asset Regulatory Authority (PVARA) this week signed an MoU with SC Financial Technologies, a company described by Reuters as affiliated with World Liberty Financial (WLFI) — the Trump-family-linked crypto business. The agreement, announced during a visit to Pakistan by WLFI founder and CEO Zach Witkoff (who is also CEO of SC Financial), is framed as a technical and regulatory dialogue around “emerging digital payment architectures.” Stablecoin integration plans Under the deal, the WLFI-linked firm will work with Pakistan’s central bank and regulators to explore integrating its USD1 stablecoin into a regulated digital payments setup. A person involved in the discussions told Reuters the aim is for the token to operate alongside Pakistan’s own digital currency infrastructure, potentially enabling new cross-border payment flows while remaining within a regulated framework. Reuters also reviewed documentation indicating SC Financial co-owns the USD1 stablecoin brand with WLFI. Context in Pakistan’s digital payments strategy The MoU aligns with Pakistan’s ongoing push to modernize payments: PVARA officials have previously said the country plans to issue a national stablecoin and is running a pilot for a central bank digital currency (CBDC). Finance Minister Muhammad Aurangzeb framed the outreach as proactive engagement with global players: “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.” US scrutiny of WLFI The Pakistan deal arrives as WLFI faces heightened scrutiny in the United States. On Tuesday, Senator Elizabeth Warren urged Comptroller of the Currency Jonathan Gould to pause the OCC’s review of a bank charter application from World Liberty Financial. WLFI applied on January 7 to become a national trust bank focused on stablecoin services — a charter that would let it issue the USD1 stablecoin, offer custodial banking, and connect to national payment rails under OCC supervision. Conflict-of-interest concerns Senator Warren warned that approving the application while President Donald Trump retains business ties could create regulatory conflicts, noting Trump’s crypto ventures remain under a revocable trust he controls. In her letter she argued that OCC rulemaking and supervision over a company tied to the President could directly affect his financial interests and asked the OCC to delay review until Trump eliminates those conflicts. What to watch The MoU is exploratory rather than binding, but it highlights growing interest by national regulators in private stablecoins and the interplay between regulated national initiatives (national stablecoins, CBDCs) and private-sector offerings. How Pakistan balances innovation, regulatory oversight, and geopolitical scrutiny — and how US regulators respond to WLFI’s bank charter bid — will be closely watched by crypto markets and policymakers alike. Read more AI-generated news on: undefined/news

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