Tokenised bonds for expats in the works

RWA Signal Insight
U.S. TreasuriesPakistan is actively developing a framework to issue tokenized sovereign notes aimed at the Pakistani diaspora, as announced by Bilal Bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA). Following the enactment of the Virtual Assets Act, 2026, the country has shifted from a restrictive stance to a regulated environment for digital finance. PVARA and the State Bank of Pakistan are currently evaluating a model for digitally native sovereign debt that utilizes regulated blockchain infrastructure to ensure same-day settlement. This initiative seeks to lower investment ticket sizes and enhance transparency for overseas investors while maintaining interoperability with existing financial systems. By leveraging Circular 10, the State Bank of Pakistan now allows regulated banks to provide accounts to licensed virtual asset service providers, facilitating the integration of these new products. This strategic move reflects a broader national effort to modernize capital markets and capture value that previously migrated to offshore platforms. The development underscores the growing trend of emerging economies adopting blockchain technology to improve sovereign debt accessibility and regulatory oversight.
Key points
- PVARA and SBP are designing a digitally native sovereign note for the Pakistani diaspora.
- The Virtual Assets Act, 2026, established the PVARA to regulate virtual asset service providers.
- State Bank of Pakistan Circular 10 enables banks to support licensed virtual asset service providers.
- Tokenization aims to reduce investment ticket sizes and enable same-day settlement for sovereign debt.
Background
The Pakistan Virtual Assets Regulatory Authority (PVARA) is the newly established government body tasked with overseeing the digital asset ecosystem in Pakistan. It operates under the Virtual Assets Act, 2026, providing a legal pathway for service providers to obtain licenses and operate within a supervised, compliant environment.