Sovereign countries enter stablecoins, Pakistan and World Liberty explore new cross-border payment pathways

Pakistan’s cooperation agreement with World Liberty Financial marks a significant turning point: stablecoins are moving from being purely financial tools to being officially incorporated into sovereign national financial systems. According to the latest news, Pakistan has reached an agreement with institutions affiliated with World Liberty Financial to launch a USD-pegged stablecoin and apply it to cross-border payments and compliant digital payment systems. This not only represents an innovative practice in stablecoin application but also reflects a profound shift in global perceptions of crypto assets.

Core Content of the Cooperation Framework

Stablecoin Technical Design

World Liberty’s USD stablecoin (USD1), with a face value anchored at 1 USD, will operate under the regulatory framework of the Central Bank of Pakistan. This means the stablecoin is not treated as a completely independent asset but is integrated into the national-level financial regulatory system. World Liberty will collaborate technically with the Pakistan Central Bank to incorporate the stablecoin into the local regulated digital payment infrastructure, enabling it to work in harmony with the existing financial system and future central bank digital currency (CBDC) architecture.

Practical Significance of Application Scenarios

According to the newsflash, the primary service focus of this cooperation is cross-border settlement and remittance scenarios. For Pakistan, this choice is highly targeted. The country has long relied on overseas remittances as a vital source of foreign exchange, with traditional cross-border payments facing high costs and low efficiency. The introduction of stablecoins can significantly reduce remittance fees and accelerate settlement speeds, which is a tangible benefit for developing countries relying on foreign exchange income.

Why Pakistan, Why Now

Policy Environment Changes

World Liberty launched its crypto financial platform in September 2024. This cooperation with Pakistan is one of its first public disclosures of collaboration at the sovereign level. The timing is no coincidence. During Trump’s administration, the U.S. federal level introduced a series of relatively friendly crypto policies, creating favorable conditions for the internationalization of stablecoins. Meanwhile, policy and economic interactions between Pakistan and the U.S. have continued to intensify, providing a practical foundation for such fintech collaborations.

Pakistan’s Proactive Strategy

The Pakistan Central Bank has already taken steps in the digital financial sector. According to the newsflash, the central bank has explicitly stated that it is preparing a pilot project for digital currency and is simultaneously advancing legislation for virtual asset regulation. This indicates that Pakistan is not passively accepting stablecoins but actively exploring how to incorporate digital assets into its financial system.

World Liberty’s Global Strategic Layout

From recent information, World Liberty has been very active. On January 13, the company launched the World Liberty Markets lending platform, a DeFi product where users can deposit assets to earn yields or use their portfolios as collateral for loans. The platform supports ETH, USDC, USDT, as well as its own WLFI and USD1 stablecoins.

The underlying logic of these actions is clear: World Liberty is building a comprehensive crypto financial ecosystem. From issuing stablecoins to lending platforms and sovereign-level compliant applications, World Liberty is attempting to create a full chain from financial tools to financial infrastructure. The cooperation with Pakistan is a manifestation of this ecosystem extending into sovereign financial systems.

The Broader Context of the Global Stablecoin Market

According to CoinFund’s latest data, the total market cap of global stablecoins has reached $319.06 billion. Among them, USDT’s market cap is $198.94 billion, USDC’s is $75.08 billion, and USD1’s has reached $3.43 billion, rising rapidly in the stablecoin rankings. This reflects increasing market acceptance of new stablecoins and provides a foundation for USD1 to enter emerging markets.

Future Outlook

If the USD stablecoin project progresses smoothly, Pakistan could become one of the early countries in emerging markets to achieve compliant stablecoin application by 2026. This will serve as an important case study for the integration of stablecoins with sovereign financial systems worldwide. According to the newsflash, the relevant agreement may be officially announced during World Liberty CEO Zach Witkoff’s visit to Islamabad, indicating that the project is close to implementation.

Summary

Pakistan’s cooperation with World Liberty represents a new stage in stablecoin application: evolving from a simple crypto asset to a payment tool integrated into national financial systems. This offers Pakistan a practical opportunity to reduce remittance costs and improve payment efficiency; for World Liberty, it is a key step in establishing a global financial infrastructure; and for the global stablecoin market, it signals an extension of application scenarios from financial markets to the real economy. The progress of this project in the coming months warrants ongoing attention.