Pakistan has signed a memorandum of understanding with global crypto exchange Binance to explore the tokenisation of up to two billion dollars worth of the country’s real world and sovereign assets, marking a significant step in the government’s engagement with blockchain based financial infrastructure. The agreement, announced by the finance ministry on Friday, sets out a framework for potential collaboration focused on using blockchain technology to digitally represent government owned assets, subject to regulatory approvals and institutional oversight. Officials said the initiative aims to enhance liquidity, transparency, and access to international markets, while remaining aligned with Pakistan’s evolving regulatory approach to digital finance.
According to the statement issued by the finance ministry, the scope of the MoU includes exploring tokenisation and blockchain based distribution mechanisms for a range of assets owned by the state. These may include sovereign bonds, treasury bills, and commodity reserves such as oil, gas, metals, and other raw materials. Tokenisation refers to the process of creating a digital representation of a physical or financial asset on a blockchain, allowing it to be divided, transferred, and traded more efficiently. The ministry noted that assets valued at up to two billion dollars could be considered under this initiative, depending on approvals and the structure eventually adopted. Finance Minister Muhammad Aurangzeb described the MoU as a signal of Pakistan’s reform trajectory and a step toward building a long term partnership in emerging financial technologies.
Binance founder Changpeng Zhao welcomed the agreement, calling it a positive signal for both the global blockchain industry and Pakistan. He said the MoU marks the beginning of a move toward full deployment of a tokenisation initiative that could place Pakistan among countries experimenting with blockchain for sovereign asset management. While the agreement does not commit either party to immediate implementation, it reflects growing interest from policymakers in leveraging distributed ledger technology to modernise capital markets and public finance infrastructure, particularly as global attention around real world asset tokenisation continues to grow.
Alongside the MoU, Pakistan Virtual Assets Regulatory Authority has issued no objection certificates to Binance and another global exchange, HTX, allowing them to begin regulated engagement within Pakistan’s digital asset market. According to PVARA, the NOCs were granted following a formal review process conducted in coordination with public sector stakeholders. This review focused on governance structures, compliance readiness, risk management frameworks, and alignment with emerging regulatory requirements. The finance minister said the introduction of a structured NOC framework reflects Pakistan’s commitment to responsible innovation and financial discipline, while avoiding unchecked activity in the digital asset space.
The NOCs allow the firms to take several preparatory steps toward formal operations, including registration on the FMU goAML system, engagement with Securities and Exchange Commission of Pakistan for incorporation of local subsidiaries, submission of full virtual asset service provider licence applications, and provision of AML registered services after goAML registration. PVARA clarified that the issuance of NOCs does not constitute a full operating licence and that further regulatory approvals will be required before commercial services can be offered at scale. PVARA Chairman Bilal Bin Saqib described the move as the beginning of a new chapter for Pakistan’s digital asset ecosystem, stating that the process is designed to lead toward a fully licensed and regulated environment centred on consumer protection, financial integrity, and responsible innovation.
Pakistan is currently ranked among the top countries globally in crypto adoption, with estimates suggesting between 30 and 40 million users and annual trading activity linked to the country exceeding 300 billion dollars. PVARA said timely and structured regulation is essential to ensure transparency, governance, and market integrity, while signalling that Pakistan remains open to innovation under clearly defined rules. The combination of the Binance MoU and conditional regulatory approvals reflects a cautious but deliberate approach as Pakistan navigates the intersection of fintech, blockchain, and sovereign finance.
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