Donald Trump’s Trump crypto deal with World Liberty Financial (WLF) generated more than $500 million from token sales in 2025, according to newly released financial disclosures. While the venture delivered a major financial windfall for the Trump family, analysts say Pakistan also benefited by securing rare diplomatic access to the White House through an early partnership with the crypto firm.
Pakistan became one of the first countries to sign an agreement with World Liberty Financial. Although the partnership has yet to produce any operational crypto projects, observers argue that it strengthened Islamabad’s ties with the Trump administration during a period of heightened regional diplomacy.
Trump crypto deal strengthens Pakistan ties
In January 2026, Pakistan’s Ministry of Finance signed a memorandum of understanding with SC Financial Technologies, an affiliate of World Liberty Financial. The agreement focused on exploring the use of the firm’s USD1 stablecoin for cross-border payments.
Prime Minister Shehbaz Sharif and Army Chief Field Marshal Asim Munir attended the signing ceremony in Islamabad. Zach Witkoff, son of Trump adviser Steve Witkoff, signed the agreement alongside Finance Minister Muhammad Aurangzeb.
However, nearly six months later, Pakistani officials confirmed that no pilot programme has started. Authorities have also issued no licences for USD1 operations, and there are no known transactions involving the stablecoin within Pakistan.
Even so, analysts believe the agreement achieved an important diplomatic objective by opening communication channels with senior officials in Washington.
Questions surround Trump crypto deal benefits
World Liberty Financial’s USD1 is a stablecoin pegged to the US dollar. Like other stablecoins, it aims to facilitate digital payments without relying on traditional banking systems.
The company earns income from reserves backing each issued token. Therefore, broader adoption of USD1 could generate additional revenue for its owners, including the Trump family.
Pakistan already ranks among the world’s largest cryptocurrency markets. According to blockchain research firm Chainalysis, the country placed third globally for crypto adoption last year, behind only India and the United States.
Despite that position, analysts note there is no evidence that USD1 has gained any meaningful use in Pakistan. Instead, most crypto activity reportedly continues to involve Tether’s USDT stablecoin.
Financial expert Ibrahim Khalil questioned the practical value of the partnership. He argued that Pakistan already receives record remittance inflows through conventional banking channels, making the need for another payment solution less obvious.
Moreover, Khalil said that unless Pakistan’s trading partners directly accept USD1, the central bank would still need to convert the stablecoin into US dollars before completing international transactions.
Pakistan expands crypto regulations
Although practical implementation remains limited, Pakistan has accelerated efforts to regulate digital assets.
In March, lawmakers approved the Virtual Assets Act, creating the Pakistan Virtual Assets Regulatory Authority (PVARA). The regulator now oversees licensing requirements for crypto businesses and has authority to enforce penalties against firms operating without approval.
Additionally, the State Bank of Pakistan allowed banks to open accounts for licensed cryptocurrency companies in April.
Even so, the regulatory framework remains incomplete. PVARA continues accepting preliminary applications, while detailed licensing rules have not yet been finalised. Major exchanges, including Binance and HTX, have received no-objection certificates but are still awaiting full operating approval.
A senior Pakistani banking executive told Al Jazeera that the agreement with World Liberty Financial remains exploratory. According to the official, the memorandum focuses on technical cooperation and knowledge-sharing rather than committing Pakistan to any specific stablecoin.
The executive added that any qualified crypto company could eventually participate once licensing rules become fully operational.
Diplomatic gains outweigh financial results
While the commercial impact remains uncertain, analysts argue the diplomatic benefits have been far more significant.
World Liberty Financial representatives first visited Islamabad in April 2025, shortly after tensions between India and Pakistan intensified following a deadly attack in Indian-administered Kashmir.
Later that year, Pakistan nominated Trump for the Nobel Peace Prize, crediting his role in helping reduce tensions between the two nuclear-armed neighbours.
Relations continued improving after Trump hosted Field Marshal Asim Munir at the White House in June 2025. The meeting marked the first time a serving US president officially received a Pakistani army chief who was not also the country’s head of state.
Furthermore, Pakistan positioned itself as a diplomatic intermediary during the US-Iran negotiations. Last month, US Vice President JD Vance publicly praised Munir for helping facilitate discussions that led to a framework agreement between Washington and Tehran.
Bilal Bin Saqib, who now heads PVARA, previously served as an adviser to World Liberty Financial before joining the Pakistani government. Earlier this year, he told Bloomberg that Pakistan’s crypto strategy had helped rebuild trust with the Trump administration and opened new diplomatic opportunities.
The White House has maintained that no conflicts of interest existed regarding the relationship between Trump and the crypto venture.
Economist Khurram Husain argued that the memorandum’s true value was political rather than financial. He said the agreement served primarily as a tool for gaining direct access to senior US decision-makers.
Khalil reached a similar conclusion. He suggested that the initiative functioned largely as a strategy to strengthen political relationships instead of delivering immediate economic benefits.
As Pakistan continues developing its cryptocurrency regulations, the long-term commercial success of the partnership remains uncertain. Nevertheless, analysts say the diplomatic dividends have already exceeded expectations by giving Islamabad unprecedented access to key figures in the Trump administration.
