Binance is set to explore tokenizing up to $2 billion worth of bonds, treasury bills and commodity reserves in Pakistan.Reuters reported on Friday.
The memorandum of understanding (MOU) with the world’s largest crypto exchange by trading volume highlights Pakistan’s desire to use blockchain technology to unlock liquidity and attract foreign investment while exploring a formal crypto regulatory framework.
Pakistan’s Ministry of Finance said the initiative could pave the way for additional government-owned assets to be tokenized in the real world and distributed on blockchain-based platforms.
The announcement comes a day after Pakistan Virtual Asset Regulatory Authority (VARA) Chairman Bilal Bin Saqib announced in a video interview with CoinDesk his country’s plans to accelerate crypto adoption, leverage Bitcoin mining and launch a national stablecoin.
Pakistan’s regulatory measures reflect a broader global trend. The United Arab Emirates, Japan and parts of the European Union are expanding formal licensing rules for crypto exchanges amid a broader global regulatory tightening.
Binance founder Changpeng Zhao said the deal was “a strong signal for the global blockchain industry and for Pakistan,” adding that it marked the start of a move towards fully rolling out the tokenization initiative.
Also today, according to Reuters, VARA said it issued early approvals to Binance and HTX after reviewing their governance and compliance controls, allowing them to register with the anti-money laundering system, create local units and prepare full applications.
Binance did not immediately respond to a request from CoinDesk for more information.
