Pakistan eyes blockchain-based tokenisation of Eurobonds
RWA Signal Insight
Non-U.S. Govt. DebtPakistan is actively exploring the tokenization of its existing Eurobond debt to modernize its financial infrastructure and improve capital market efficiency. Finance Minister Muhammad Aurangzeb confirmed that the government is currently awaiting cabinet approval to issue a formal request for proposals regarding this digital transformation. This initiative aligns with broader efforts to integrate blockchain technology into the national economy, following a previous agreement with Binance to explore the tokenization of up to $2 billion in sovereign assets. The government views tokenization as a strategic tool to reduce transaction costs, enhance financial inclusion, and streamline cross-border remittances, which reached $41.6 billion in the previous fiscal year. To support this transition, Pakistan has established the Virtual Assets Act 2026 and created the Pakistan Virtual Assets Regulatory Authority to oversee service providers. While the government remains cautious regarding cybersecurity and the distinction between regulated tokenized deposits and unbacked cryptocurrencies, the move signals a significant shift toward institutional blockchain adoption. By leveraging international models like JPMorgan’s deposit tokens and the BIS Project Agora, Pakistan aims to position itself as a forward-thinking participant in the global digital asset landscape.
Key points
- Pakistan plans to tokenize Eurobond debt pending cabinet approval for a formal RFP.
- The government previously signed a 2025 agreement with Binance to tokenize $2 billion in assets.
- The Virtual Assets Act 2026 established the Pakistan Virtual Assets Regulatory Authority for oversight.
- Pakistan raised $3 billion through a dual-tranche Eurobond issuance in September 2026.
Background
Eurobonds are international debt securities denominated in a currency other than that of the country where they are issued, typically used by governments to raise capital from global investors. Tokenizing these instruments involves representing the bond ownership on a blockchain, which can facilitate fractional ownership, automated interest payments via smart contracts, and 24/7 secondary market trading. This process aims to replace traditional, slower settlement systems with near-instantaneous digital ledger updates.