Govt allows Binance to explore 'tokenisation' of up to $2b in state assets
Pakistan Virtual Assets Regulatory Authority chairman Bilal bin Saqib shakes hands with Binance founder Changpeng Zhao as the government signs a memorandum of understanding with the crypto exchange Binance. Photo: X
The government has signed a memorandum of understanding with crypto exchange Binance to explore the "tokenisation" of up to $2 billion in sovereign bonds, T-bills and commodity reserves to boost liquidity and attract investors, the finance ministry said on Friday.
Separately, the Ministry of Finance also gave initial clearance for Binance and HTX, a digital-asset platform, to register with regulators to set up local subsidiaries and begin preparations for full exchange licence applications, the virtual assets authority said.
Pakistan takes a decisive step toward a regulated digital asset future.
Pakistan Virtual Assets Regulatory Authority (PVARA) has issued NOCs to Binance and HTX, launching a phased, FATF-aligned pathway toward full licensing. Strong governance, AML and CFT compliance remain… pic.twitter.com/jSk6JTqvFtThe ministry said the agreement paved the way to explore a potential collaboration aimed at enabling the tokenisation and blockchain-based distribution of Pakistan's real-world assets.
These can include sovereign bonds, treasury bills, commodity reserves such as oil, gas, metals or other raw materials owned by the government. Tokenisation is the process of creating a digital version of an asset.
The move comes as other countries such as the United Arab Emirates, Japan and parts of the European Union expand formal licensing rules for crypto exchanges amid broader global regulatory tightening.
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The ministry also said the initiative could involve assets of up to $2 billion, subject to approvals, with the aim of improving liquidity, transparency and international market access.
Finance Minister Muhammad Aurangzeb said the MoU signalled Pakistan's reform trajectory and "a long-term partnership."
Binance founder Changpeng Zhao said the agreement was "a great signal for the global blockchain industry and for Pakistan", saying it marked the beginning of a move toward full deployment of the tokenisation initiative.
Initial clearance for Binance, HTX
The Pakistan Virtual Assets Regulatory Authority said it had issued early approvals to Binance and HTX after reviewing their governance and compliance controls. The clearances allow them to register on the Anti-Money Laundering system, set up local units and prepare full applications.
Chair Bilal bin Saqib said the clearances kick off Pakistan's phased licensing process and signalled that compliance strength will determine which exchanges move ahead.
Broader digital-asset initiatives
The initiative comes as the government speeds up a major digital-finance overhaul into just a few months, creating the Pakistan Crypto Council and establishing the Virtual Assets Regulatory Authority while drafting a formal licensing regime.
Pakistan ranks as the world's third-largest crypto market by retail activity, Saqib said at Binance Blockchain Week Dubai 2025 earlier this week.
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A central bank digital currency pilot and a Virtual Assets Act are also planned for 2025.
Pakistan's crypto council has signed a letter of intent with US-based World Liberty Financial to explore stablecoin use, tokenisation and other digital-asset infrastructure, Pakistan's finance ministry said in April.