Islamabad: The government has signed a landmark $2 billion real-world asset tokenisation agreement with Binance Investments, marking Pakistan’s first formal entry into blockchain-based distribution of sovereign assets. However, the move has sparked debate over transparency and due process, with questions raised about the selection of Binance and the absence of leading global asset tokenisation players from the initiative.
The concerns were voiced by former finance minister Asad Umar, who questioned the credibility of the process in a post on social media platform X on Saturday. A real-world asset tokenisation agreement worth $2 billion was signed between GOP and Binance. What process was used to select Binance? It is neither a major player in asset tokenisation globally nor carries a high level of credibility for this task, he wrote.
Mr Umar further asked whether globally recognised financial institutions with established experience in asset tokenisation including BlackRock, UBS, Goldman Sachs, JP Morgan and HSBC were invited to participate. Emphasizing the strategic importance of the initiative, he said Pakistan’s first transaction in digital tokenization would set the tone for credibility and long-term success, underscoring the need for transparent and competitive decision-making.
The agreement was formalised on Friday through a Memorandum of Understanding (MoU) signed between the Ministry of Finance and Binance Investments Co., Ltd. The signing ceremony took place at the Finance Division, with Federal Minister for Finance and Revenue Muhammad Aurangzeb and Binance CEO Richard Teng signing the document. Changpeng Zhao (CZ), founder of Binance and adviser to the Pakistan Crypto Council, was also present.
According to the Ministry of Finance, the MoU establishes a framework for exploring collaboration on the tokenisation and blockchain-based distribution of Pakistan’s real-world and sovereign assets. These may include government bonds, treasury bills, commodity reserves and other federally owned assets.
Subject to applicable laws, policies and regulatory approvals, the initiative could involve assets worth up to $2bn. The government says the objective is to enhance liquidity, improve transparency and expand international market access for Pakistani sovereign assets through the use of blockchain technology.
While officials have described the agreement as a pioneering step toward modernising Pakistan’s financial architecture, critics argue that the lack of clarity around the selection process risks undermining investor confidence at a time when credibility and governance remain key challenges for the economy.