Reuters reported that the deal will explore using World Liberty Financial’s USD1 stablecoin for cross-border payments. The arrangement represents one of WLF’s first publicly disclosed deals with a sovereign government as Pakistan-U.S. ties strengthen, the report said. The agreement will see WLF work with Pakistan’s central bank to integrate USD1 into a regulated digital payments structure, enabling the token to operate alongside the country’s digital currency infrastructure. Pakistan has been pursuing digital currency initiatives to reduce cash reliance and bolster cross-border payments, with its central bank preparing a pilot and drafting legislation for virtual assets.
The news came one week after a WLF subsidiary applied to the Office of the Comptroller of the Currency to establish a stablecoin-focused national trust bank. The charter would position World Liberty Trust Company, National Association, to issue and custody USD1, a dollar-backed stablecoin. The company introduced the stablecoin in March.
As stablecoins become more enmeshed with regulated finance, they are colliding with governance challenges they were not built to solve, according to PYMNTS. Stablecoin firms such as Kontigo and BlindPay froze accounts at JPMorgan Chase due to chargebacks tied to online activity, underscoring the friction between open-access networks and centralized compliance. The broader question is whether public-chain stablecoin systems can coexist reliably with traditional regulatory expectations without placing partners at risk.
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