Pakistan has signed a memorandum of understanding with crypto exchange Binance to explore the “tokenisation” of up to $2 billion in sovereign bonds, T-bills and commodity reserves to boost liquidity and attract investors, the finance ministry said on Friday.

Tokenisation is the process of creating a digital version of an asset.

Separately, Pakistan also gave initial clearance for Binance and HTX, a digital-asset platform, to register with regulators to set up local subsidiaries and begin preparations for full exchange licence applications, the Pakistan Virtual Assets Regulatory Authority (PVARA) said.

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

“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,” the ministry said in a press release.

Finance Minister Muhammad Aurangzeb said the agreement was a very strong message to both Pakistan and the entire world.

“What we have signed today reflects a long-term partnership. From where we started to moving towards operationalisation, this progress could not have happened without active guidance and leadership,” Aurangzeb was quoted as saying.

“The next step for us is execution, and we are fully committed to delivering results with speed and quality.”

The move comes as other countries, such as the United Arab Emirates, Japan and parts of the European Union, expand formal licensing rules for crypto exchanges amid broader global regulatory tightening.

The ministry also said the initiative could involve assets of up to $2bn, subject to approvals, to improve liquidity, transparency and international market access.

Binance founder Changpeng Zhao said the agreement was “a great signal for the global blockchain industry and for Pakistan”, saying it marked the beginning of a move toward full deployment of the tokenisation initiative.

“This is the beginning … now we can move towards full deployment and execution. We are honoured to work with Pakistan’s leadership and are confident this collaboration will deliver positive and lasting outcomes for the economy,” he was quoted as saying.

Initial clearances for Binance, HTX

The PVARA said it had issued early approvals to Binance and HTX after reviewing their governance and compliance controls. The clearances allow them to register on the Anti-Money Laundering system, set up local units and prepare full applications.

PVARA Chairman Bilal bin Saqib said the clearances kick off Pakistan’s phased licensing process and signalled that compliance strength will determine which exchanges move ahead.

Broader digital-asset initiatives

The initiative comes as Pakistan speeds up a major digital-finance overhaul in just a few months, creating the Pakistan Crypto Council (PCC) and establishing the PVARA, while drafting a formal licensing regime.

Pakistan ranks as the world’s third-largest crypto market by retail activity, Saqib said at Binance Blockchain Week Dubai 2025 earlier this week.

A central bank digital currency pilot and a Virtual Assets Act are also planned for 2025.

The PCC signed a letter of intent with US-based World Liberty Financial to explore stablecoin use, tokenisation and other digital-asset infrastructure, the finance ministry said in April.