Pakistan’s Ministry of Finance has signed a landmark Memorandum of Understanding (MoU) with leading cryptocurrency exchange Binance to explore the tokenization of up to $2 billion in real-world government assets, including sovereign bonds, treasury bills and commodity reserves such as oil, gas and metals. The agreement — aimed at boosting liquidity, transparency and international investor access — was announced on Friday in Islamabad.
Finance Minister Muhammad Aurangzeb and Binance Co-founder and CEO Changpeng Zhao were present for the signing, which officials described as a major step in harnessing blockchain technology for Pakistan’s financial markets.
What the MoU entails — tokenisation and blockchain innovation
According to a statement from the finance ministry, the MoU establishes a framework for potential cooperationbetween Pakistan and Binance to evaluate ways of digitizing and distributing real-world assets through secure, blockchain-based platforms. This process, known as tokenization, involves creating digital representations of physical or financial assets that can be traded, settled and tracked on distributed ledger systems.
Under the proposed arrangement, Binance and its affiliates could provide technical expertise, advisory support, training and capacity building to help Pakistan assess modern, compliant blockchain infrastructure. The goal is to build platforms that respect the country’s regulatory framework while enhancing liquidity, operational efficiency and access for international investors.
Regulatory advances and crypto market ecosystem
The MoU comes alongside broader digital-asset regulatory developments in Pakistan. The Pakistan Virtual Assets Regulatory Authority (PVARA) has granted no objection certificates (NOCs) to both Binance and the digital-asset platform HTX, allowing them to register with Pakistani regulators and begin preparations for full exchange licence applications.
PVARA Chair Bilal bin Saqib said the NOCs initiate a phased licensing process and signal Pakistan’s move toward a regulated environment that balances innovation with governance, compliance and risk management.
These steps are part of a broader digital finance strategy that includes establishing a Virtual Assets Act, rolling out a central bank digital currency (CBDC) pilot and creating the Pakistan Crypto Council to guide policy and industry engagement.
Potential benefits and policy goals
Officials and industry observers say the initiative could:
- Improve liquidity for traditionally less-liquid sovereign and commodity assets.
- Increase transparency and traceability through blockchain-enabled recordkeeping.
- Attract foreign capital by making Pakistani assets more accessible to global investors.
- Modernize financial infrastructure by demonstrating practical use cases for regulated digital-asset technologies.
Finance Minister Aurangzeb called the MoU “a strong signal of Pakistan’s reform trajectory” and emphasized long-term partnership goals, while Binance’s Zhao described the collaboration as a positive development for Pakistan and the global blockchain sector.
Next steps and outlook
The MoU is non-binding and represents an expression of intent to explore the feasibility of tokenization initiatives; any definitive agreements will be negotiated over the next six months and are subject to Pakistani laws, regulatory approvals and policy decisions.
Observers will be watching:
- Regulatory approvals and detailed project plans that emerge from the exploratory phase.
- Responses from global financial investors regarding newly tokenized sovereign assets.
- Integration with Pakistan’s ongoing crypto-regulatory framework, including licensing, AML compliance and investor protections.
Background
Pakistan has been rapidly advancing its digital asset policy this year, recognizing the country as one of the world’s most active retail crypto markets and seeking to harness financial technologies to drive growth and inclusion. The MoU with Binance is among the latest efforts to align Pakistan’s financial system with evolving global blockchain standards.
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