Pakistan weighs USD1 for cross-border transfers in World Liberty talks

Traders Union
All News
Crypto
Pakistan weighs USD1 for cross-border transfers

Deal expected to be announced during Zach Witkoff’s Islamabad visit

Pakistan is expected to formally announce the agreement later Wednesday during a visit by World Liberty CEO Zach Witkoff to Islamabad, according to Reuters. The timing matters because World Liberty has been rapidly expanding its footprint, including the recent launch of World Liberty Markets, an onchain lending and borrowing platform built around USD1 and the WLFI governance token. The platform allows users to post collateral like Ether, tokenized Bitcoin, and major stablecoins, tying USD1 deeper into DeFi market activity.

World Liberty has also drawn attention for its role in large-scale transactions, including a reported case where Abu Dhabi-backed investment firm MGX used USD1 to facilitate a $2 billion equity purchase in Binance. Together, these moves frame USD1 as a stablecoin seeking institutional relevance through both DeFi utility and cross-border settlement narratives. If Pakistan follows through, it would provide one of the clearest real-world government-linked validation points for the project so far.

Pakistan builds regulatory rails to attract crypto capital

The reported stablecoin deal fits into Pakistan’s broader push to rebrand itself as a serious digital-asset jurisdiction rather than an informal retail-driven market. The country has stepped up efforts to formalize crypto oversight, including the creation of the Pakistan Virtual Assets Regulatory Authority and opening a phased licensing approach that allows global exchanges to prepare for compliance-based entry. Officials have also signaled ambitions around building a Bitcoin reserve and expanding into real-world asset tokenization, framing crypto as a channel for attracting foreign capital and liquidity.

A regulated stablecoin track could serve as a practical pillar of that strategy, especially for remittances — a major economic lifeline in many emerging markets. Still, integrating a politically-linked stablecoin into sovereign payment infrastructure is likely to raise questions about governance, transparency, and long-term policy alignment. Whether USD1 becomes a durable component of Pakistan’s payment rails will depend on regulatory execution and whether the stablecoin can scale beyond headlines into consistent transactional use.

Recently we wrote that Cardano founder Charles Hoskinson has criticized President Donald Trump for what he sees as slow progress on key U.S. crypto legislation, linking the delays to the politicization of digital assets and the rise of memecoins.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.