Pakistan would enable Binance to study ‘tokenisation’ of up to $2 billion in assets.

ISLAMABAD ( Channel News Pakistan) Pakistan has signed a memorandum of understanding with cryptocurrency exchange Binance to investigate the “tokenisation” of up to $2 billion in sovereign bonds, T-bills, and commodities reserves in order to increase liquidity and attract investors, the finance ministry announced on Friday.

Tokenization is the process of establishing a digital representation of an asset.

Separately, the Pakistan Virtual Assets Regulatory Authority (PVARA) approved Binance and HTX, a digital-asset platform, to register with authorities, establish local subsidiaries, and begin preparations for complete exchange license applications.

The agreement, according to the ministry, paved the way for the exploration of a potential collaboration aimed at enabling the tokenization and blockchain-based distribution of real-world assets such as sovereign bonds, treasury bills, commodity reserves such as oil, gas, metals, or other government-owned raw materials.

“Under the proposed arrangement, Binance and/or its affiliates may provide technical expertise, advisory support, training and capacity building to enable Pakistan to assess modern, compliant blockchain infrastructure,” according to a news statement from the government.

Finance Minister Muhammad Aurangzeb stated that the deal sent a powerful message to Pakistan and the rest of the globe.

“What we signed today represents a long-term collaboration. “From where we started to where we are now, this progress could not have happened without active guidance and leadership,” Aurangzeb said.

“The next step for us is execution, and we are fully committed to delivering results with speed and quality.”
Other nations, like the United Arab Emirates, Japan, and portions of the European Union, are expanding formal licensing standards for cryptocurrency exchanges as global regulations tighten.

The ministry also stated that the program might include assets worth up to $2 billion, subject to permissions, to increase liquidity, transparency, and international market access.

Binance founder Changpeng Zhao described the deal as “a great signal for the global blockchain industry and for Pakistan,” and said it signified the start of a path toward full deployment of the tokenisation plan.

“This marks the beginning…” Now we may proceed with complete deployment and execution. We are honored to collaborate with Pakistan’s leadership and are certain that our partnership will result in positive and long-term economic consequences,” he was quoted as adding.