A $500 Million Bet: Pakistan’s Crypto Link to Trump Yields Diplomatic Dividend
When US President Donald Trump’s financial earnings for 2025 were made public this week, a striking figure emerged. His family’s cryptocurrency business, World Liberty Financial (WLF), generated over $500 million from token sales alone last year. This substantial crypto windfall came with a notable diplomatic element, as Pakistan became an early partner in the firm’s ventures.
In January, Pakistan’s Ministry of Finance signed a key agreement with SC Financial Technologies, a company linked to WLF. The goal was to explore using its digital currency, USD1 stablecoin, for international payments. Top Pakistani officials, including Prime Minister Shehbaz Sharif and army chief Field Marshal Asim Munir, welcomed WLF executives to Islamabad for the signing. Zach Witkoff Jr., son of a Trump adviser, signed the deal with Pakistan’s Finance Minister.
Despite the high-profile ceremony, almost six months later, no pilot projects for USD1 have started. No licenses have been issued, and there are no known transactions using the stablecoin in Pakistan.
Analysts suggest that Pakistan achieved something far more valuable than the stated aim of the deal. They believe it granted Islamabad unique access to the incoming Trump administration. A stablecoin, like USD1, is a digital currency designed to hold a fixed value, usually pegged to the US dollar. It aims to transfer money over the internet without needing traditional banks. WLF profits from interest on the reserves that back each USD1 coin.
Pakistan already has one of the world’s largest crypto markets, ranking third globally last year. However, much of its unofficial crypto activity uses other stablecoins. Questions remain about the true extent of money moving through these informal channels. Formal remittances to Pakistan, surprisingly, reached a record $38.3 billion last fiscal year, casting doubt on the necessity of alternative payment methods.
Banking experts note that Pakistan’s central bank would still need to convert any USD1 received into traditional dollars for imports. This could add complications rather than simplify transactions.
Despite these uncertainties, Pakistan has quickly moved to regulate its crypto sector. A new law established the Pakistan Virtual Assets Regulatory Authority (PVARA) to license firms and enforce rules. Banks can now open accounts for licensed crypto companies. However, full licensing procedures are still being finalized.
The diplomatic benefits of the WLF agreement appear more concrete. The WLF delegation visited Pakistan following tensions with India last year. Pakistan later nominated Trump for the Nobel Peace Prize, and its army chief, Munir, was hosted by Trump at the White House. This was a rare occurrence for a non-head of state. The January crypto deal also came before the US-Israeli conflict with Iran, where Pakistan positioned itself as a mediator. US Vice President JD Vance later credited Munir with helping to broker a peace framework.
Bilal Bin Saqib, who now chairs PVARA, previously advised World Liberty Financial. He stated that the crypto initiative helped rebuild trust with Washington. The White House denies any conflict of interest.
Economists and banking professionals broadly agree. One economist in Karachi called the agreement “nothing more than an instrument of access” that “paid off spectacularly” for Islamabad.
