Why Pakistan chooses stablecoin infrastructure: agreement with crypto company for cross-border payments

Pakistan, located in South Asia at a strategic crossroads of trade routes, is increasingly positioning itself as a pioneer in the adoption of crypto innovations. This week, the country announced a groundbreaking agreement that could change the future of cross-border payments in the region. The agreement with SC Financial Technologies, a company collaborating with World Liberty Financial (WLFI), marks an important step in exploring stablecoins as a means of payment.

Pakistan’s Virtual Asset Regulatory Authority (PVARA) officially announced the memorandum of understanding. This agreement lays the foundation for technical cooperation in the field of regulated infrastructure for stablecoin-based payments, demonstrating how seriously Pakistan takes these developments.

SC Financial Technologies and WLFI: the partners behind the agreement

SC Financial Technologies, although still relatively unknown in broader circles, functions as an affiliate of World Liberty Financial. This project is closely connected to the family of U.S. President Donald Trump, showing Pakistan’s willingness to collaborate with internationally significant players in the field of digital currencies.

According to those involved in the deal, SC Financial Technologies will work closely with Pakistan’s central bank. This cooperation focuses on integrating WLFI’s USD1 stablecoin into Pakistan’s payment framework, allowing the coin to operate alongside the country’s own digital currency initiatives.

Technical cooperation: USD1 stablecoin in the Pakistani payment system

The core of the agreement lies in the possibilities for international transactions. The plan proposes that the stablecoin can be implemented in Pakistan’s payment systems, potentially speeding up and simplifying international transfers and settlements.

Muhammad Aurangzeb, Pakistan’s Minister of Finance, emphasized that the country is focused on progress. “Our focus is on collaborating with credible global partners, understanding new financial models, and ensuring that innovation aligns with regulations, stability, and national interests,” Aurangzeb said. This statement underscores that Pakistan is not blindly following innovations but strategically evaluating how crypto technology can contribute to the nation’s financial infrastructure.

Stablecoins and international transactions: Pakistan follows the global trend

Stablecoins, digital assets typically pegged to the US dollar, have experienced explosive growth in recent years. Financial institutions worldwide are increasingly testing tokenized payments, with stablecoins serving as a bridge for faster and cheaper international transactions.

Pakistan’s interest in this technology reflects a broader global movement. Countries and regions recognize that stablecoins can offer a solution to costly and slow cross-border payments. This is especially relevant for Pakistan, given the significant remittance flows and extensive international trade relations.

Trump policy and the preference for crypto innovation

The timing of this agreement coincides with a shift in the regulatory climate in the United States. Under President Trump, the U.S. government implemented federal regulations that many observers see as favorable for the crypto sector. This conducive regulatory environment makes initiatives like WLFI and collaborations with countries like Pakistan more attractive.

Global regulators are still exploring how stablecoins can function optimally within existing payment systems. Pakistan’s agreement with SC Financial Technologies positions the country at the forefront of this exploration, demonstrating that the nation is willing to take risks in the name of financial innovation.

This step highlights how Pakistan, given its geographic and economic position in the world, is leveraging this as an opportunity to modernize its financial systems and improve international connectivity.