Pakistan Stablecoin Deal May Create Conflict of Interest
By Reuters | 14 Jan, 2026

Pakistan signed a deal with SC Financial Technologies, an affiliate of the Trump Family's World Liberty Financial, to create a payment architecture to enable widespread use of stablecoins for cross-border payments.

Pakistan said on Wednesday it had signed an agreement with a firm connected to World Liberty Financial, the main crypto business of U.S. President Donald Trump's family, to explore using World Liberty’s USD1 stablecoin for cross-border payments.

The Pakistan Virtual Asset Regulatory Authority said in a statement that a memorandum of understanding with SC Financial Technologies, a little-known company it described as an "affiliated entity" of World Liberty, would enable "dialogue and technical understanding around emerging digital payment architectures."

The announcement represents one of the first publicly announced tie-ups linking World Liberty, a crypto-based finance platform launched in September 2024, and a sovereign state. It also comes amid a warming of ties between Pakistan and the United States.

Reuters was the first to report that the deal had been signed ahead of the regulator's announcement.

Under the agreement, SC Financial Technologies will work with Pakistan's central bank to integrate its USD1 stablecoin into a regulated digital payments structure, allowing the token to operate alongside Pakistan's own digital currency infrastructure, a source involved in the deal said.

WORLD LIBERTY CEO VISITS PAKISTAN

The memorandum was announced during a visit to Pakistan by World Liberty co-founder and chief executive Zach Witkoff, who is the son of U.S. special envoy Steve Witkoff.

A government photograph showed Finance Minister Muhammad Aurangzeb and Witkoff signing the agreement, with Prime Minister Shehbaz Sharif and army chief General Asim Munir standing behind them. Other images from the meeting showed a wider Pakistani government delegation, including intelligence chief Lieutenant General Muhammad Asim Malik and crypto regulatory official Bilal bin Saqib, along with World Liberty co-founders Zak Folkman and Chase Herro.

Witkoff is also the CEO of SC Financial Technologies. The company, registered in Delaware, co-owns with World Liberty the USD1 stablecoin brand, according to documentation on the stablecoin’s reserves from July 2025.

David Wachsman, spokesman for World Liberty Financial, said in a statement to Reuters: “The agreement reached between the Government of Pakistan and SC Financial Technologies, a sister company of World Liberty Financial, could help ensure that the U.S. dollar will remain the world’s reserve currency. Pakistan will be exploring how a trusted, compliant U.S. dollar-denominated stablecoin would be used for digital payments and international remittances."

Wachsman said that World Liberty Financial is not receiving financial compensation from the agreement.

Aurangzeb, the finance minister, said: "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."

Stablecoins - digital tokens typically pegged to the dollar - have ballooned in value in recent years. 

Under Trump, the United States has introduced federal rules widely seen as beneficial to the sector, and countries across the world are beginning to examine the potential role of stablecoins in payments and financial systems.

World Liberty has fuelled a sharp increase in income for the Trump family business, known as the Trump Organization, including from foreign entities, in the first half of last year, Reuters reported in October. Last May, MGX, a state-controlled Abu Dhabi investment company, used the World Liberty stablecoin to buy a $2 billion equity stake in Binance, the world’s largest crypto exchange.

The growth of the Trump family’s crypto initiatives as Trump oversees U.S. crypto policy constitutes a conflict of interest, government ethics experts have said. The White House has denied that any such conflicts exist.

Trump and Steve Witkoff are both listed with the title "Co-Founder Emeritus" on World Liberty's website, with the footnote that they were "removed upon taking office."

Witkoff's most recent financial disclosure, which he signed on August 13, 2025, lists both World Liberty Financial and SC Financial Technologies as assets, with no monetary value assigned. 

David Warrington, White House counsel, said in an emailed statement that Witkoff is "taking steps to divest from World Liberty Financial, notwithstanding his ability and willingness to recuse."

"Mr. Witkoff, like all Administration officials, takes seriously his compliance with the government ethics rules," he said. "As Special Envoy for Peace Missions, he has not and does not participate in any official matters that could impact his financial interests."

Pakistan has been exploring digital currency projects as it seeks to reduce cash usage and improve cross-border payments such as remittances, a key source of foreign exchange. 

It sees over $36 billion in annual remittance inflows, with an estimated 40 million crypto users and up to $300 billion in annual crypto trading volumes, the regulator's statement said. 

Pakistan's central bank governor said in July it was preparing to launch a pilot for a digital currency and is finalising legislation to regulate virtual assets.

(Reporting by Ariba Shahid in Karachi; additional reporting by Lawrence Delevingne in Boston. Writing by Tom Wilson in London; Editing by Tom Lasseter, Lincoln Feast, Michael Perry and Diane Craft)