Pakistan Signs First-of-its-Kind Stablecoin Deal
Pakistan is using financial ventures to rebuild its strategic relationship with Washington, culminating in a landmark agreement to explore the national adoption of stablecoins. In a January meeting in Islamabad, Pakistan's Army Chief Asim Munir presided over the signing of the deal between the country's Finance Ministry and World Liberty Financial, a crypto firm led by CEO Zach Witkoff. The venture, which has reportedly earned the Trump family over $1 billion since its 2024 launch, marks the company's first formal stablecoin exploration with a sovereign state.
This agreement is the result of a sustained diplomatic and commercial effort. The relationship was cultivated over the past year, with Zach Witkoff previously visiting Islamabad in April 2025 for meetings with Prime Minister Shehbaz Sharif and Munir. The head of Pakistan’s newly established digital-assets regulator has also served as an adviser to World Liberty, cementing the financial ties between the nation and the U.S.-based crypto enterprise.
Geopolitics Follows Financial Overtures
These financial dealings provide the foundation for Pakistan's surprising re-emergence as a central diplomatic player in the Middle East. Leveraging its renewed influence, Islamabad helped deliver America’s 15-point peace plan to Iran and has offered to host a de-escalation summit. While Tehran rejected the initial proposal, the back-channel communication established by Pakistan has yielded tangible results, including Iran's agreement to allow 20 Pakistani ships to pass through the contested Strait of Hormuz.
The diplomatic push is driven by severe economic and security pressures within Pakistan. The regional conflict has contributed to a roughly 20% increase in domestic fuel prices, straining the national economy. It also ignited violent protests after the death of Iran's Supreme Leader, which left at least 22 people dead nationwide and saw a mob breach the U.S. Consulate in Karachi, killing 12 people. By positioning itself as a peace broker, Islamabad aims to mitigate these destabilizing forces and protect its economic interests, which include remittances from 5 million Pakistani workers in the Arab world.
