ISLAMABAD: Pakistan and global crypto exchange Binance signed a memorandum of understanding (MoU) on Friday to explore what it said was the “tokenization” of up to $2 billion in sovereign bonds, treasury bills and commodity reserves to boost liquidity and attract investors, the finance ministry said.
The development took place hours after the Pakistan Virtual Assets Regulatory Authority (PVARA) granted no objection certificates (NOCs) to Binance and HTX, another global crypto exchange.
“The MoU establishes a framework for exploring potential collaboration on the tokenization and blockchain-based distribution of Pakistan’s real-world and sovereign assets, including government bonds, treasury bills, commodity reserves and other federally owned assets,” the finance ministry said.
“Subject to applicable laws, policies and regulatory approvals, the initiative may involve assets of up to USD 2 billion, with the objective of enhancing liquidity, transparency and international market accessibility.”
The ministry said that as per the MoU, Binance and/or its affiliates may provide technical expertise, advisory support, training and capacity building to enable Pakistan to assess modern, compliant blockchain infrastructure.
It further said the collaboration aims to explore secure and transparent digital platforms that could facilitate broader participation by international investors, while fully respecting Pakistan’s regulatory framework and sovereign control.
Finance Minister Muhammad Aurangzeb described the agreement as a “strong” sign of Pakistan’s reform trajectory.
“The next step for us is execution, and we are fully committed to delivering results with speed and quality,” he said.
NOCs FOR BINANCE, HTX
The PVARA earlier issued NOCs to HTX and Binance, with the authority saying it had done so following a review process it conducted with public sector stakeholders that focused on governance structures, compliance frameworks, risk management controls and alignment with Pakistan’s emerging regulatory requirements for virtual asset activities.
Pakistan has been moving to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight and encouraging innovation in blockchain-based financial services.
PVARA said the NOCs allow Binance and HTX to conduct preparatory and engagement activities within Pakistan under “defined regulatory oversight,” clarifying that it does not constitute a “full operating license.”
They also allow Binance and HTX to begin registration on the FMU goAML, Pakistan’s anti–money laundering reporting platform, as reporting entries. The exchanges can now engage with the Securities and Exchange Commission of Pakistan (SECP) regulator to incorporate their subsidiaries in the country.
HTX and Binance can also prepare and submit their full VASP license applications once licensing regulations are promulgated and provide anti-money laundering (AML) registered services after the completion of their goAML registration, PVARA said.
“PVARA will continue to engage with domestic and international stakeholders as it advances subsequent phases of its regulatory framework,” the authority said.
