World Liberty Financial: A Trump-Linked Crypto Firm Partners with Pakistan Amid Rising Tensions
Date: April 30, 2025
Author: Navdeep Singh, ETMarkets.com
Overview
World Liberty Financial (WLFI), a cryptocurrency firm with ties to the Trump family, has gained international attention following its recent partnership with Pakistan’s cryptocurrency sector. This collaboration comes at a time of heightened tensions between India and Pakistan, particularly following a deadly terrorist attack in India.
Partnership with Pakistan’s Crypto Council
The partnership, formalized through a letter of intent with the Pakistan Crypto Council, aims to facilitate the adoption of blockchain technology, stablecoins, and decentralized finance (DeFi) within the country. This accord was made during a visit to Islamabad, where executives from WLFI, including Zachary Folkman, Chase Herro, and Zachary Witkoff, engaged with prominent Pakistani leaders, including Prime Minister Shehbaz Sharif and army chief General Asim Munir. The meeting also included Finance Minister Muhammad Aurangzeb and the governor of the State Bank of Pakistan, demonstrating the significance of this endeavor.
Timing Raises Security Concerns
The timing of the agreement has sparked significant concern, especially since it occurred just five days after a terrorist incident in Pahalgam, India, which resulted in the deaths of 26 individuals. Indian officials have accused Pakistan of harboring the attackers, a claim that Pakistan has denied. Critics in India have raised alarms about potential security vulnerabilities associated with the deal, particularly regarding data protection and national security.
An Indian policy adviser expressed worry that offshore crypto exchanges established in Pakistan could lure Indian traders seeking to evade taxes, thereby placing sensitive financial data at risk.
Trump Family’s Involvement and Ethical Implications
World Liberty Financial is predominantly controlled 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 referred to as the “DeFi Visionary.” The firm successfully raised $300 million in October 2024 through the sale of its WLFI tokens and has plans to launch a stablecoin named USD1, backed by U.S. Treasury assets.
However, the involvement of the Trump family has raised ethical questions about the intersection of their business interests and political connections. Reports indicate that the firm has pursued strategic partnerships with other crypto startups, sometimes in ways that remain obscure to the public, leading to claims of conflicts of interest that blur the lines between business and governance.
Growing Crypto Landscape in Pakistan
The partnership with the Pakistan Crypto Council is part of a broader effort to position Pakistan as a leader in cryptocurrency adoption in South Asia. The council aims to build on the country’s growing crypto user base, which ranked 9th globally in 2024 with approximately 25 million users and an annual transaction volume of $300 billion. CEO Bilal Bin Saqib has previously criticized India’s steep crypto taxes, suggesting that Pakistan could adopt a more favorable regulatory stance to attract investment in the sector.
As World Liberty Financial continues its endeavors, it is clear that the convergence of cryptocurrency, politics, and international relations will remain a focal point of scrutiny, particularly as the world watches how Pakistan navigates its aspirations amid geopolitical tensions.
Conclusion
The dealings of World Liberty Financial with Pakistan highlight not only the rapid evolution of the cryptocurrency landscape but also the complex interplay of politics, security, and business ethics that can accompany such ventures. As both countries move forward, the implications of this partnership will be closely observed by stakeholders and policy-makers alike.
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