Trump’s WLF Signs Deal with Pakistan’s PCC Amid India Tensions
In the wake of escalating India-Pakistan tensions after the lethal Pahalgam terror attack, a shocking turn of events has shaken diplomatic circles. The World Liberty Financial (WLF) — a DeFi platform strongly associated with the Trump family — has signed a partnership agreement with Pakistan's Crypto Council (PCC), igniting controversy just a week after Donald Trump publicly assured India of "full support."
WLF and Pakistan Crypto Council Sign Landmark Agreement
As per reports, WLF founders Zach Witkoff, Zak Folkman, and Chase Hero recently made their way to Islamabad, where they engaged in far-reaching conversations with members of the Pakistan Crypto Council. Post conversations, the two sides penned a "Letter of Intent" (LOI) to engage with each other to work together in blockchain innovation, real estate tokenization, using stablecoins, and beyond.
The timing here is what really makes this highly sensitive.
What is World Liberty Financial (WLF)?
Launched in September 2024, WLF is an emerging DeFi protocol to democratize lending and credit facilities through its native token $WLFI.
The Trump family is said to own a 60% stake in the platform. Donald Trump himself acts as the "Chief Crypto Advocate," with his sons Eric Trump and Donald Trump Jr. as "Web3 Ambassadors," and Barron Trump being made a "DeFi Visionary."
Also Read: Crypto Exchanges Ordered to Update KYC by June 30, FIU Tightens Rules
Fallout After Pahalgam Attack
The partnership announcement comes just days after 26 Indian civilians were killed and dozens injured in the Pahalgam terror attack in Jammu & Kashmir — a massacre which early investigations suggest involved Pakistan-backed militant groups.
First, Donald Trump offered his sympathies, committing "full support" to India. Later, though, Trump called himself a "close friend of both India and Pakistan" and called for "dialogue and peaceful solutions," which were widely interpreted in India as a diplomatic backtrack.
What's In the Deal?
According to the Pakistan Crypto Council's release, the LOI contains some top priorities such as:
- Establishing a Regulatory Sandbox for blockchain financial products.
- Building responsible DeFi protocols.
- Fostering tokenization of real-world assets, such as property and commodities.
- Encouraging increased application of stablecoins for trade and remittance.
- Providing strategic counsel on global blockchain legislation.
Surprisingly, Changpeng Zhao (CZ), former CEO at Binance, was recently made a strategic advisor to PCC, further giving momentum to the council's agenda.
Growing Crypto Issues Over Terror Financing Ties
Pakistan's increasing crypto activity — pegged at over 25 million active crypto users — poses grave threats to India.
While Pakistan's crypto world is still largely unregulated, similar to India's, Indian agencies like the Financial Intelligence Unit (FIU) have cautioned against the possibility of using cryptocurrencies in funding terror activities.
Considering the past of Pakistan supporting terror organizations, any significant blockchain collaborations coming out of there are going to put Indian security institutions on red alert.
