By State Bank Syed Shabbar Zaidi & Co
Redemption of Asset Reference Token
An Issuer of an Asset-Referenced token shall maintain arrangements for the custody, valuation, and safekeeping of reference assets, and ensure redemption, reserve, and disclosure mechanisms in such manner as may be prescribed in Regulations.
Illustrative Example in Pakistan’s Regulated Exchange Regime
Virtual Asset Ordinance 2025: Explanation and comments—I
In our view, which may be substantiated when the rules will be prescribed will be that the minimum capital requirement for the issuer is Rs 1 billion. Therefore, if a foreign issuer intends to issue an asset referenced token in Pakistan to Pakistanis then there will be an inward flow of $ 357,000 [Rs 1,000,000@ 280 per 1 $] which will remain invested in Pakistan in various Pakistani assets.
The issuer can have assets outside Pakistan also. However, that is not necessary. The Pakistan buyers will pay in rupees; however, they may be issued asset-referenced tokens to the extent of $ actually brought in Pakistan.