A recent cryptocurrency agreement between Pakistan and World Liberty Financial (WLF), a US-based decentralized finance firm with significant ownership ties to the Trump family, has come under intense scrutiny due to its timing, high-profile participants, and potential geopolitical implications.

World Liberty Financial, founded in 2024, is primarily owned by DT Marks DEFI LLC, an entity affiliated with Donald Trump and his family. The Trump family, specifically Eric Trump, Donald Trump Jr., and Jared Kushner, collectively control about 60% of WLF through this entity. While Eric Trump serves as a manager on the board, the day-to-day operations are reportedly managed by professionals outside the Trump family. The Trump family and their affiliates also hold a substantial portion of WLF’s native digital currency, $WLFI tokens, and are entitled to a significant share of proceeds from token sales.

The deal was signed just days after the terror attack in Pahalgam, Jammu and Kashmir, and before India's military response, Operation Sindoor, raising eyebrows in both New Delhi and Washington. The agreement was formalized between WLF and the newly formed Pakistan Crypto Council (PCC), which was established only weeks prior with the ambition of making Islamabad the "crypto capital of South Asia." To bolster credibility, Binance founder Changpeng Zhao was brought on as an adviser to the PCC.

A high-profile WLF delegation, led by Zachary Witkoff (son of Steve Witkoff, a long time Trump associate and US Special Envoy to the Middle East), traveled to Islamabad for the signing. The delegation was personally received by Pakistan’s Army Chief, General Asim Munir, and held closed-door meetings with both Munir and Prime Minister Shehbaz Sharif. Munir’s direct involvement has fuelled speculation about the deal’s potential national security significance, though no explicit links to security matters have been publicly disclosed.

The agreement allows WLF to integrate blockchain technology across Pakistan’s financial institutions, including the tokenization of assets, development of stablecoins, and establishment of regulatory sandboxes for decentralised finance pilot projects. The stated objective is to enhance financial inclusion and drive digital transformation within Pakistan’s financial sector.

The timing and opacity of the deal, combined with the Trump family's involvement and the presence of senior Pakistani military leadership, have led to concerns in India and among strategic commentators about possible political and security ramifications. Some view the partnership as an "opaque financial alliance with serious political overtones," especially given the escalation of India-Pakistan tensions at the time.

World Liberty Financial has denied any political motives, emphasising the deal’s focus on financial innovation and inclusion. However, neither the Trump family nor the White House has publicly commented on the agreement, and the US State Department has not taken an official position.

In summary, the Pakistan-WLF cryptocurrency deal is under scrutiny due to:

The Trump family's substantial ownership and financial interest in WLF.
The involvement of Pakistan’s military leadership, particularly General Asim Munir.
The deal’s timing, coinciding with heightened India-Pakistan tensions.
Concerns about the potential for the partnership to influence geopolitical dynamics or serve as a financial lifeline with political implications.

Meanwhile, according to a report by Firstpost, strategic commentators in New Delhi have raised the flag over what they see as an "opaque financial alliance with serious political overtones."

Agencies