Binance is set to explore the tokenization of up to $2 billion in bonds, treasury bills and commodity reserves in Pakistan, Reuters reported on Friday.

The memorandum of understanding (MOU) with the world's largest crypto exchange by trade volume highlights Pakistan’s push to use blockchain technology to unlock liquidity and attract foreign investment as it explores a formal crypto regulatory framework.

Pakistan’s Finance Ministry said the initiative could pave the way for tokenizing additional government-owned real-world assets and distributing them on blockchain-based platforms.

The announcement comes one day after the Chairman of Pakistan's Virtual Assets Regulatory Authority (VARA), Bilal Bin Saqib, announced in a video interview with CoinDesk his country’s plans to accelerate crypto adoption, leverage Bitcoin mining, and launch a national stablecoin.

Pakistan’s regulatory moves mirror a broader global trend. The United Arab Emirates, Japan and parts of the European Union are expanding formal licensing rules ‍for crypto exchanges amid broader global regulatory tightening.

Binance founder Changpeng Zhao said the agreement was "a great signal for the global blockchain industry and for Pakistan", adding that it marks the start of a move toward full deployment of the tokenization initiative.

Also today, according to Reuters, the VARA said it issued early approvals to Binance and HTX after reviewing their governance and compliance controls, allowing them to register on the Anti-Money Laundering system, set up local units and prepare full applications.

Binance did not immediately respond to a CoinDesk request for more information.