As tensions rise between India and Pakistan following the deadly terrorist attack in Kashmir, U.S. President Donald Trump’s deepening crypto ties with Pakistan are drawing sharp criticism. World Liberty Financial (WLF), a decentralized finance (DeFi) platform with 60% equity ownership tied to Trump and his family, announced a partnership with the Pakistan Crypto Council (PCC) to accelerate blockchain innovation in the country.
This comes at a sensitive time as just days ago, Trump publicly expressed “full support” for India after the Pehalgam attack that reportedly killed 26 tourists and injured dozens. However, behind the scenes, WLF was finalizing plans to enter Pakistan, the country India accuses of harbouring terror networks.
This dual approach has raised accusations of hypocrisy, with critics asking how Trump can support India diplomatically while building business ties with Pakistan economically.
World Liberty Financial’s Islamabad Visit and the New Blockchain Deal
The announcement was made official when WLF’s co-founders, Zach Witkoff, Zak Folkman, and Chase Hero arrived in Islamabad and met with Bilal Bin Saqib, CEO of the Pakistan Crypto Council. The two signed a Letter of Intent (LOI) outlining the plan: launching regulatory sandboxes for DeFi products, expanding stablecoin applications for remittances and trade, and tokenizing real-world assets like real estate and commodities.
Despite the volatile regulatory environment, Pakistan reportedly has 25 million active crypto users. But the government neither regulates nor bans crypto activities, just like India.
This latest partnership comes after the Pakistan Crypto Council appointed Binance founder Changpeng Zhao (CZ) as its crypto advisor earlier this year.
Kashmir Attack Fallout: Trump’s Tightrope Walk
The timing couldn’t be worse. The Pehalgam attack in Jammu and Kashmir has reignited the long-standing India-Pakistan tensions, with New Delhi blaming Islamabad for ‘providing safe havens to terror groups.
Initially, Trump condemned the violence and stood with India, saying,
“the United States stands with India in the fight against terrorism”.
But within days he softened his tone, calling himself “friends” with both India and Pakistan and telling them to “figure it out one way or the other”. This has sparked accusations of diplomatic doublespeak with critics saying Trump’s business interests are influencing his foreign policy.
Former U.S. Ambassador to India, Richard Verma told Politico,
“When private business entanglements enter the equation, it’s harder to trust that national interests are being prioritized”.
Indian media is also picking up on the controversy with The Hindu and Times Now asking if Trump’s economic interests in Pakistan will compromise future U.S.-India relations.
The Strategic Play: Why Pakistan matters for Crypto Expansion
Pakistan’s crypto market is a frontier for DeFi platforms like World Liberty Financial. Despite the inconsistent regulatory framework, the country has a large unbanked population, rising smartphone penetration and a crypto-savvy youth demographic making it an attractive growth market.
According to a 2024 Chainalysis report, Pakistan was among the top 5 countries in grassroots crypto adoption globally.
Stablecoin usage has exploded with Pakistani users preferring USDT and USDC for remittance transfers to avoid inflation and currency devaluation.
The PCC’s partnership with WLF aims to formalize and regulate this growing sector through pilot programs and regulatory sandboxes, potentially giving WLF first-mover advantage in one of the world’s fastest growing crypto markets.
But the regulatory environment is still uncertain. Pakistan’s Ministry of Finance has repeatedly delayed decisions on comprehensive crypto legislation citing money laundering and financial stability concerns.
Ethical and Political Implications: A Growing Scandal
The WLF-PCC partnership further muddies the already thin line between Trump’s business and diplomacy.
Ethics experts say such entanglements will complicate America’s foreign policy credibility. Whether it’s a golf course in Scotland or a blockchain protocol in Islamabad, the problem is the same: private interests influencing public policy. It could also alienate India, a key U.S. partner in the Indo-Pacific region.
Without clear disclosures and recusal mechanisms, critics say World Liberty Financial’s expansion could create new vulnerabilities in U.S. diplomacy not just in South Asia but globally.
FAQs
What is World Liberty Financial?
DeFi platform for lending, borrowing and crypto yield, heavily backed by President Donald Trump and his family.
Why is the World Liberty Financial partnership with Pakistan controversial?
Tensions between India and Pakistan after a terrorist attack in Kashmir, questions about Trump’s neutrality and ethics.
What does the WLF-PCC Letter of Intent include?
Regulatory sandboxes, stablecoin expansion, tokenization of real-world assets like real estate, blockchain infrastructure advisory.
How big is Pakistan’s crypto market?
Pakistan has over 25 million active crypto users, one of the top countries in global crypto adoption despite no formal regulation.
How will this impact U.S.-India relations?
Trump’s business with Pakistan through World Liberty Fi will strain ties with India, a key U.S. ally, at a sensitive time.
Glossary
DeFi (Decentralized Finance): Financial system built on blockchain that operates without ‘intermediaries like banks or brokers.
Stablecoin: Cryptocurrency ‘that maintains a stable value by pegging to a fiat currency like the U.S. dollar.
Regulatory Sandbox: Environment where businesses can test innovative ‘products, services or business models under a regulator’s supervision.
Tokenization: Process of converting real-world assets like real estate or commodities into digital tokens ‘on a blockchain.
Letter of Intent (LOI): Non-binding ‘agreement outlining preliminary terms for a partnership or contract.
References
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