ISLAMABAD (MNN); Pakistan has entered into a memorandum of understanding with global crypto exchange Binance to examine the tokenisation of up to $2 billion worth of sovereign bonds, treasury bills and commodity reserves. The finance ministry said on Friday that the initiative aims to boost liquidity and attract international investors.
Tokenisation refers to converting physical or traditional assets into digital versions.
In a separate development, Pakistan has also granted initial clearance to Binance and HTX to register with regulators, allowing them to begin the process of establishing local subsidiaries and preparing for full exchange licence applications, according to the Pakistan Virtual Assets Regulatory Authority (PVARA).
The finance ministry said the MoU opens the door for potential cooperation on blockchain-based distribution of real-world assets, including government-owned reserves of oil, gas, metals and other raw materials. The ministry added that Binance and its affiliates may offer technical assistance, advisory services, training and capacity building to help Pakistan evaluate modern, compliant blockchain systems.
Finance Minister Muhammad Aurangzeb described the agreement as a strong signal both domestically and internationally. He said the partnership reflects long-term collaboration, adding that progress so far would not have been possible without consistent guidance and leadership. He emphasised that the next phase is execution, with a focus on timely and quality results.
The development comes as countries such as the UAE, Japan and members of the European Union expand formal licensing frameworks for crypto exchanges amid global regulatory tightening. The ministry stated that assets worth up to $2 billion may be included in the tokenisation initiative, subject to approvals, to enhance liquidity and transparency and improve Pakistan’s access to global markets.
Binance founder Changpeng Zhao welcomed the MoU, calling it a positive signal for both the blockchain industry and Pakistan. He said the agreement marks the start of a move toward full implementation of the tokenisation programme and expressed confidence that the collaboration will yield long-term benefits for Pakistan’s economy.
According to PVARA, initial approvals have been granted to Binance and HTX after reviewing their governance standards and compliance frameworks. The clearances allow the platforms to register with Pakistan’s Anti-Money Laundering system, set up local entities and prepare their full licence applications. PVARA Chairman Bilal bin Saqib said the approvals mark the beginning of Pakistan’s phased licensing process, adding that an exchange’s compliance strength will be key to its progress.
Pakistan is rapidly pushing forward a broad digital-finance transformation. In recent months, the government has established the Pakistan Crypto Council (PCC), launched PVARA, and begun drafting a comprehensive licensing regime for digital assets. Pakistan is currently the world’s third-largest crypto market by retail participation, Saqib noted during Binance Blockchain Week Dubai 2025.
Plans for next year include a pilot for a central bank digital currency and the introduction of a Virtual Assets Act. Earlier in April, the finance ministry said the PCC signed a letter of intent with US-based World Liberty Financial to explore stablecoin applications, tokenisation and broader digital-asset infrastructure in Pakistan.
