Trump-linked crypto firm steps into Pakistan
The company, which is 60% owned by a Trump family entity, signed a letter of intent with the Pakistan Crypto Council during a recent visit to Islamabad. The deal aims to boost blockchain use, stablecoin adoption and decentralised finance (DeFi) in the country.
Executives from World Liberty Financial, including Zachary Folkman, Chase Herro and Zachary Witkoff, met top Pakistani leaders, including Prime Minister Shehbaz Sharif and army chief General Asim Munir, according to Dawn newspaper. Finance Minister Muhammad Aurangzeb, the chairman of the Securities and Exchange Commission, and the State Bank governor also attended the meeting.
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Why this deal is raising concerns
The agreement came just five days after a terrorist attack in Pahalgam killed 26 people. India has said two of the attackers were from Pakistan, a claim Pakistan denies. The timing of the deal has raised questions in India, especially around data safety and national security.An Indian policy adviser warned that offshore crypto exchanges, if set up in Pakistan, could attract Indian traders trying to avoid taxes. “The larger worry is Indians’ financial data falling into Pakistani hands,” the person said.
Trump family’s role in the firm
World Liberty Financial is largely controlled by the Trump family. Donald Trump is listed as the firm’s “Chief Crypto Advocate,” while his sons Eric and Donald Jr are named “Web3 Ambassadors.” His youngest son, Barron Trump, is called the “DeFi Visionary.”The company raised $300 million in October 2024 by selling its WLFI tokens. It also plans to launch a stablecoin, USD1, backed by US Treasury assets.According to The New York Times, the firm approached several crypto startups for currency swap deals, offering them its tokens in exchange for smaller amounts of their own. These deals were kept secret and often came with high fees.
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More ties raise ethical questions
The NYT report said the Trump family’s deep involvement in the firm blurs the lines between business and politics. It pointed to multiple examples where the Trump-backed platform seemed to benefit from decisions made in Washington.
Chinese crypto investor Justin Sun, who invested $75 million in WLFI, later saw his legal case paused by the SEC. Other controversial investors include Ethena’s Arthur Hayes and Binance founder Changpeng Zhao, both of whom have faced legal troubles.
The firm also received a $25 million investment from Dubai’s DWF Labs to support its stablecoin. In another example, a New York crypto firm that invested in World Liberty later donated to Trump’s inauguration and sponsored a Trump-linked crypto event.
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Pakistan eyes crypto growth
Pakistan Crypto Council, with support from Trump and Binance’s Zhao, aims to turn Pakistan into South Asia’s crypto hub. In 2024, the country ranked 9th globally in crypto adoption with around 25 million users and $300 billion in annual transactions.
Council CEO Bilal Bin Saqib recently criticised India’s 30% tax on crypto trading, saying Pakistan would follow a more open approach.
While the partnership could help Pakistan’s crypto ambitions, the close link between the Trump family, business interests, and foreign policy is drawing scrutiny in both Washington and New Delhi.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)