Pakistan and Binance discuss tokenization of $2 billion in state assets

Key points:

• Pakistan intends to use blockchain to tokenize some of its state assets and has already begun cooperation with Binance.
• The country is also discussing the launch of a national stablecoin and the development of a licensing system for crypto exchanges.

The Pakistani authorities have signed a memorandum of understanding with the Binance cryptocurrency platform to explore the idea of converting state assets into a tokenized format. The total value of such assets could reach $2 billion. At the same time, the launch of its own state stablecoin is being discussed.

The signing of the document was announced by the Pakistani Ministry of Finance. According to the agreement, Binance will provide consulting support in analyzing the possibility of issuing tokens backed by government bonds, treasury instruments, and strategic reserves. The list of assets includes raw materials such as oil, gas, and metals. This is a preparatory stage, not an immediate launch of projects.

Binance founder Changpeng Zhao, who is a member of the advisory board of the Pakistan Crypto Council, noted that the initiative demonstrates the country’s openness to the implementation of blockchain solutions. At the same time, the memorandum is of a framework nature and provides for the conclusion of final agreements within six months after receiving all regulatory approvals.

Regulation, licenses, and digital currency

At the same time, the Pakistan Virtual Asset Regulatory Authority (PVARA) has issued preliminary permits to Binance and HTX. These documents allow exchanges to begin the local licensing process and connect to the national anti-money laundering (AML) system. However, companies cannot provide services to users until they receive a full license.

According to the regulator, Pakistan is one of the largest retail crypto trading markets: the number of users is estimated at approximately 40 million, and the annual volume of transactions exceeds $300 billion.

Earlier, the head of the agency, Bilal bin Sakib, said that bitcoin and digital assets would become the basis of the country’s new financial system.