World Liberty Financial, a cryptocurrency firm based in the United States and partially owned by the Trump family, has garnered international attention after finalizing an agreement to enhance blockchain technology in Pakistan. This development follows a recent terrorist incident in Pahalgam that has heightened tensions between India and Pakistan.
### Trump-Linked Crypto Firm Enters Pakistan
World Liberty Financial, which is 60% owned by a Trump family entity, has signed a letter of intent with the Pakistan Crypto Council during a recent trip to Islamabad. The primary goal of this agreement is to promote the use of blockchain technology, encourage stablecoin utilization, and advance decentralized finance (DeFi) within the country. Key executives from World Liberty, including Zachary Folkman, Chase Herro, and Zachary Witkoff, engaged with high-ranking Pakistani officials, such as Prime Minister Shehbaz Sharif and army chief General Asim Munir, as reported by Dawn newspaper. The meeting was also attended by Finance Minister Muhammad Aurangzeb, the chairman of the Securities and Exchange Commission, and the governor of the State Bank.
### Concerns Arise Over Timing of the Agreement
The timing of the partnership is particularly contentious, coming just five days after a terrorist attack in Pahalgam that resulted in 26 fatalities. India has alleged that two of the assailants were from Pakistan, a claim that Pakistan disputes. This development has sparked concerns in India regarding data security and national safety. An Indian policy adviser has cautioned that the establishment of offshore cryptocurrency exchanges in Pakistan might attract Indian investors looking to evade taxes. The adviser expressed a significant concern about the potential risk of Indian financial data falling into the hands of Pakistani entities.
### The Trump Family’s Involvement in the Company
World Liberty Financial is primarily governed by the Trump family, with Donald Trump serving as the firm’s “Chief Crypto Advocate.” His sons, Eric and Donald Jr., hold the titles of “Web3 Ambassadors,” while Barron Trump is designated as the “DeFi Visionary.” The company successfully raised $300 million in October 2024 through the sale of its WLFI tokens and has plans to introduce a stablecoin named USD1, which will be backed by U.S. Treasury assets. According to reports from The New York Times, the firm has approached various cryptocurrency startups to negotiate currency swap agreements, offering its tokens in exchange for smaller amounts of the startups’ currencies. These transactions were often conducted discreetly and accompanied by substantial fees.
### Ethical Concerns Surrounding Increased Ties
According to The New York Times, the Trump family’s significant involvement in the firm raises questions about the overlap between business interests and political influences. The report highlights instances where the Trump-affiliated platform appears to benefit from governmental decisions made in Washington. Notable investors such as Chinese crypto entrepreneur Justin Sun, who invested $75 million in WLFI, have experienced legal reprieves from the SEC, while other controversial backers, including Arthur Hayes of Ethena and Binance founder Changpeng Zhao, have faced legal challenges. Additionally, the firm has received a $25 million investment from Dubai’s DWF Labs to bolster its stablecoin initiative. In a related instance, a New York-based crypto firm that invested in World Liberty later contributed to Trump’s inauguration and sponsored a Trump-associated crypto event.
### Pakistan’s Vision for Cryptocurrency Advancement
The Pakistan Crypto Council, with backing from Trump and Binance’s Zhao, aims to establish Pakistan as a leading cryptocurrency center in South Asia. In 2024, the nation ranked 9th worldwide for crypto adoption, boasting around 25 million users and $300 billion in annual transactions. CEO Bilal Bin Saqib of the council has recently criticized India’s 30% tax on cryptocurrency trading, asserting that Pakistan will adopt a more open regulatory framework. Although this partnership may bolster Pakistan’s crypto aspirations, the strong connections between the Trump family’s business endeavors and foreign policy are attracting scrutiny from both Washington and New Delhi.
