Pakistan has signed an agreement with crypto exchange Binance to explore “tokenization” of government assets. The project aims to modernize the country’s financial system, attract investors, and improve market transparency.
Pakistan has signed a memorandum of understanding (MoU) with crypto exchange Binance to explore the tokenization of up to $2 billion of government-owned assets, the finance ministry said on Friday. These assets include sovereign bonds, treasury bills, and natural resources.
Tokenization is when a real asset is turned into its digital version. For example, a barrel of oil can be shown as a digital token on a blockchain system. It can be tracked and traded online.
The ministry said the initiative is intended to improve liquidity, making it easier to buy and sell these assets, and attract both local and international investors.
Binance and HTX Got Initial Clearances
The Pakistan Virtual Assets Regulatory Authority (PVARA) has given initial approval to Binance and HTX, a local digital-asset platform, to start setting up in Pakistan.
They can register with regulators, open local offices, and get ready to apply for full exchange licenses. This allows them to register with the Anti-Money Laundering system and start preparing full license applications.
Binance and its affiliates may provide technical support, training, and advice to help Pakistan create a safe and legal blockchain system to manage these digital tokens.
PVARA Chairman Bilal bin Saqib said that the final approval for exchanges will depend on how well they meet compliance rules. Only platforms that follow the rules strongly will be allowed to move forward in Pakistan’s phased licensing process.
Pakistan’s Wider Digital Finance Plans
This move is part of Pakistan’s bigger plan for digital finance. It also includes the creation of the Pakistan Crypto Council (PCC), testing a central bank digital currency, and a Virtual Assets Act in 2025.
Earlier, the PCC signed a letter of intent with US-based World Liberty Financial to explore stablecoins, tokenization, and other digital asset projects.
