Pakistan has entered into a memorandum of understanding (MoU) with Binance, the world’s largest cryptocurrency exchange, to examine the tokenisation of government-owned assets valued at up to $2 billion, the finance ministry said on Friday.

Under the agreement, Pakistan will explore the use of blockchain technology to distribute so‑called real-world assets, including sovereign bonds, treasury bills and state-owned commodity reserves such as oil, gas, metals and other raw materials. Tokenisation involves converting physical or traditional financial assets into digital tokens that can be traded more efficiently, potentially improving liquidity and market access.

The finance ministry said the initiative—subject to regulatory approvals—aims to enhance transparency, deepen liquidity and broaden access to global investors, positioning Pakistan within a growing group of countries experimenting with blockchain-based financial infrastructure.

Finance Minister Muhammad Aurangzeb described the MoU as evidence of Pakistan’s reform momentum and characterised it as the start of “a long-term partnership.”

Binance founder Changpeng Zhao welcomed the agreement, calling it “a strong signal for the global blockchain industry and for Pakistan,” and said it marked the beginning of full-scale deployment of tokenisation in the country.

Regulatory clearance for Binance and HTX
In a related development, Pakistan has granted initial regulatory clearance to Binance and HTX, another major digital-asset exchange, allowing both platforms to begin preparations for formal licensing.

The Pakistan Virtual Assets Regulatory Authority (PVARA) said the early-stage approvals were issued following an assessment of the firms’ governance structures and compliance frameworks. The clearance permits the exchanges to register under Pakistan’s anti-money laundering regime, establish local subsidiaries and submit full applications for virtual-asset exchange licences.

PVARA chairman Bilal bin Saqib said the licensing process would be phased, with priority given to platforms demonstrating strong compliance records and regulatory discipline.

Broader push into digital finance
The agreements come as Pakistan accelerates reforms in digital finance, including the creation of the Pakistan Crypto Council, the establishment of a dedicated regulatory authority for virtual assets and the drafting of a comprehensive licensing framework for crypto platforms.

Pakistan currently ranks as the world’s third-largest crypto market by retail activity, Saqib said earlier this week at Binance Blockchain Week in Dubai.

Authorities are also planning a pilot central bank digital currency (CBDC) and the introduction of a Virtual Assets Act in 2025.

In April, the finance ministry said the Pakistan Crypto Council had signed a letter of intent with US-based World Liberty Financial to explore cooperation on stablecoins, asset tokenisation and digital-asset infrastructure.

Meanwhile, countries including the United Arab Emirates, Japan and parts of the European Union are rolling out structured regulatory regimes for crypto platforms amid tighter global oversight of digital assets.