Donald Trump’s family has just upped their stakes in Pakistan! World Liberty Financial, a cryptocurrency venture linked to US President Donald Trump’s family, has entered into an agreement with Pakistan. The development comes at a time of improving relations between Pakistan and the United States.
According to a Reuters report, the deal will assess the use of World Liberty’s stablecoin for cross-border transactions. The report adds that the deal is among the first publicly disclosed partnerships between World Liberty, which is a crypto-focused financial platform launched in September 2024, and a national government.
Trump Family-led Firm's Stablecoin Deal with Pakistan
As part of the agreement, World Liberty Financial will collaborate with Pakistan’s central bank to incorporate its USD1 stablecoin into a regulated digital payments framework. This would allow the token to function alongside Pakistan’s existing digital currency systems, the Reuters report said.
Further specifics of the agreement involving SC Financial Technologies, a relatively low-profile firm connected to World Liberty, were not disclosed. Pakistan is expected to formally announce the deal later on Wednesday during a visit to Islamabad by World Liberty chief executive Zach Witkoff.
At the same time, Pakistan has been advancing work on digital currency initiatives as part of efforts to curb reliance on cash and enhance cross-border payment channels, particularly remittances, which are a major source of foreign exchange. In July last year, Pakistan’s central bank governor said preparations were underway for a digital currency pilot, alongside the finalisation of laws to regulate virtual assets.
Stablecoins are digital assets which are generally linked to the value of the US dollar. These have grown rapidly in scale over recent years. Under President Donald Trump, the United States has rolled out federal regulations that are widely viewed as supportive of the cryptocurrency sector, while governments globally are increasingly looking at how stablecoins can be incorporated into payment mechanisms and broader financial systems.
World Liberty reportedly contributed to a big jump in revenues for the Trump family’s business interests, collectively known as the Trump Organization, including earnings from overseas sources during the first half of last year.
In May 2024, MGX, a state-owned investment firm based in Abu Dhabi, used the World Liberty stablecoin to acquire a $2 billion equity stake in Binance, which is the world’s largest cryptocurrency exchange.
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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