Pakistan Advances Tokenisation Strategy for $2 Billion in Government Assets and Explores National Stablecoin

Major Asset Digitalization Initiative Underway

Pakistan has formalized a strategic agreement with a major cryptocurrency exchange to explore the digitalization of up to US$2 billion in state assets. The initiative encompasses a diverse portfolio including sovereign bonds in Pakistan, treasury bills, and commodity reserves such as oil, gas and metals. The Finance Minister Muhammad Aurangzeb confirmed that this framework signals the country’s commitment to modernizing its financial infrastructure through blockchain technology.

The core objective of this tokenisation project is to test whether distributing real-world assets (RWAs) on blockchain networks can enhance market liquidity, improve transparency, and create better access channels for international investors. By converting traditional government securities and commodity reserves into digital tokens, Pakistan aims to unlock new opportunities in global capital markets while maintaining sovereign control over these critical assets.

Regulatory Green Light for Exchange Operations

Pakistan’s Virtual Assets Regulatory Authority has granted preliminary clearances to multiple exchanges to begin establishing local operations. These initial approvals permit the platforms to register on the country’s anti-money laundering (AML) system, establish local subsidiaries, and commence preparations for comprehensive exchange licence applications.

The regulator emphasized that progression through subsequent approval stages will be contingent upon demonstrated compliance strength and adherence to regulatory standards. This measured approach allows Pakistan to simultaneously attract crypto infrastructure operators while maintaining robust oversight mechanisms.

Tokenisation and Stablecoin Development

The memorandum of understanding represents a foundational step in Pakistan’s broader digital asset strategy. Beyond tokenizing existing government securities, the country’s Crypto Council is actively exploring the development of a national stablecoin. This multifaceted approach—combining RWA tokenisation with domestic stablecoin infrastructure—positions Pakistan among nations actively integrating blockchain technology into sovereign financial systems.

Tokenisation technology enables the conversion of physical or traditional financial assets into tradeable digital representations on blockchain networks, a sector experiencing rapid expansion within the cryptocurrency industry. This mechanism offers particular advantages for government assets, enabling real-time settlement, fractional ownership opportunities, and reduced intermediaries in cross-border transactions.

The initiative signals Pakistan’s evolution toward long-term integration of distributed ledger infrastructure in government finance and capital markets development.