Pakistan has signed a memorandum of understanding with crypto exchange Binance to explore the tokenization of up to $2 billion in sovereign bonds, treasury bills, and commodity reserves, the Ministry of Finance said on Friday, according to Reuters. The initiative aims to boost market liquidity, attract investors, and integrate advanced blockchain infrastructure into the country’s financial system.
Exploring tokenization of state-backed assets
The finance ministry said the agreement establishes a framework for collaboration between Pakistan and Binance to explore blockchain-based distribution of government-owned real-world assets. These may include sovereign bonds, treasury bills, and commodity reserves such as oil, gas, and metals.
“Tokenisation is the process of creating a digital version of an asset,” the ministry said in a statement. The plan could involve assets of up to $2 billion, subject to regulatory approvals. The goal is to improve transparency, liquidity, and access for international investors.
Finance Minister Muhammad Aurangzeb said the signing reflects Pakistan’s forward-looking reform agenda and signals confidence in long-term partnerships with global players in blockchain technology.
“The MoU signalled Pakistan's reform trajectory and ‘a long-term partnership,’” Aurangzeb stated in comments quoted by Reuters.
Binance hails initiative as milestone for blockchain industry
Binance founder Changpeng Zhao, also known as CZ, welcomed the deal as a landmark step.
“The agreement was ‘a great signal for the global blockchain industry and for Pakistan,’” Zhao said, noting that it represents the beginning of the tokenization strategy’s full deployment.
The collaboration follows Binance’s ongoing discussions with regulators in several jurisdictions, including Pakistan, where the exchange recently secured Anti-Money Laundering (AML) registration under the Pakistan Virtual Assets Regulatory Authority (PVARA). This registration brings Binance closer to securing a full Virtual Asset Service Provider (VASP) license in the country, the company said in a blog update.
Binance Co-CEO Richard Teng described Pakistan as “one of the world’s most dynamic regions for digital and financial innovation” and emphasized the company’s commitment to “responsibly supporting Pakistan’s digital economy.”
Regulatory groundwork and exchange clearances
Alongside the MoU, Pakistan’s Virtual Assets Regulatory Authority confirmed early approvals for both Binance and HTX (formerly Huobi) to initiate local registration procedures, according to Reuters. These preliminary clearances allow both firms to register with the country’s AML system, set up subsidiaries, and prepare detailed license applications. The approvals came after an evaluation of each exchange’s governance and compliance frameworks.
PVARA Chair Bilal bin Saqib said the early approvals mark the beginning of Pakistan’s structured licensing process for digital asset platforms. He emphasized that the country’s step-by-step approach will ensure only compliant operators become fully licensed.
“Our ongoing partnership with Binance continues to strengthen as we work together to build a transparent and innovative future for digital assets in Pakistan,” Saqib said earlier this week, according to Binance's announcement.
A broader digital finance transformation
Pakistan is advancing multiple digital economy reforms in 2025. They include a central bank digital currency (CBDC) pilot, the establishment of the Pakistan Crypto Council, and the drafting of a Virtual Assets Act to formalize the new regulatory landscape.
In April, the Finance Ministry said the Pakistan Crypto Council signed a letter of intent with World Liberty Financial, a U.S. entity, to explore stablecoin use and tokenization infrastructure.
Pakistan ranks as the world’s third-largest crypto market by retail activity, according to PVARA, with an expanding user base and rising adoption rates across financial technology sectors.
The Binance partnership represents another milestone in Pakistan’s effort to link traditional assets with blockchain-based financial systems. The Ministry said the initiative could transform access to domestic and international markets while aligning with its broader economic modernization goals.
Anastasiia G
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