Finance Minister Muhammad Aurangzeb signs a memorandum of understanding as Binance founder Changpeng Zhao looks on in Islamabad. Photo: Courtesy: X/@Financegovpk
KARACHI:
Pakistan has signed a memorandum of understanding with crypto exchange Binance to explore “tokenization” of up to $2 billion of sovereign bonds, treasury bills and commodity reserves to increase liquidity and attract investors, the Finance Ministry said on Friday.
Separately, Pakistan has also given initial approval to Binance and HTX, a digital assets platform, to register with regulators to establish local subsidiaries and begin preparations for full exchange license applications, the virtual assets authority said.
The ministry said the agreement paves the way for exploring a potential collaboration to enable blockchain-based tokenization and distribution of Pakistan’s real-world assets.
These can be sovereign bonds, treasury bills, commodity reserves such as oil, gas, metals or other government-owned raw materials.
Tokenization is the process of creating a digital version of an asset. The move comes as other countries such as the United Arab Emirates, Japan and parts of the European Union expand formal licensing rules for crypto exchanges amid a broader global regulatory tightening.
The ministry also said the initiative could involve assets of up to $2 billion, subject to approvals, with the aim of improving liquidity, transparency and international market access.
Finance Minister Muhammad Aurangzeb said the MoU signals Pakistan’s reform trajectory and “a long-term partnership.” Binance founder Changpeng Zhao said the deal was “a strong signal for the global blockchain industry and for Pakistan,” saying it marked the start of a move towards fully rolling out the tokenization initiative.
Pakistan’s Virtual Assets Regulatory Authority said it had issued advance approvals to Binance and HTX after reviewing their governance and compliance controls. The authorizations allow them to register on the anti-money laundering system, create local units and prepare complete files.
President Bilal bin Saqib said the clearances kick-start Pakistan’s progressive licensing process and signal that the strength of compliance will determine which exchanges move forward.
Pakistan ranks third in the global crypto market in terms of retail activity, Saqib said at Binance Blockchain Week Dubai 2025 earlier this week.
A central bank digital currency pilot and a virtual assets law are also planned for 2025. Pakistan’s crypto council signed a letter of intent with US firm World Liberty Financial to explore the use of stablecoins, tokenization and other digital asset infrastructure, the Finance Ministry said in April.
