A16z leads $12.9M round for ZAR to bring stablecoins to Pakistan’s unbanked

Venture capital giant Andreessen Horowitz (a16z) is leading a $12.9 million funding round for ZAR, a one-year-old fintech startup aiming to make dollar-backed stablecoins accessible to everyday consumers in Pakistan and other emerging markets.

The round drew participation from Dragonfly Capital, VanEck Ventures, Coinbase Ventures and Endeavor Catalyst, according to a Tuesday report by Bloomberg. The startup is targeting Pakistan’s 240 million people, where the World Bank estimates over 100 million adults remain unbanked.

Unlike many crypto companies focused on apps or global exchanges, ZAR plans to distribute stablecoins through local stores, phone kiosks and money agents, the same network used for mobile top-ups and remittances.

The company said it hopes this approach will help citizens access dollar-backed digital money without requiring them to understand blockchain or crypto technology, per the report.

Related: Crypto helps emerging economies bypass legacy financial constraints

ZAR lets users swap cash for stablecoins

Users can enter a participating shop, scan a QR code and exchange cash for stablecoins stored in a mobile wallet connected to a Visa card usable worldwide. ZAR launched its platform earlier this year and said it is seeing strong early traction in Pakistan’s urban centers.

ZAR allows users to turn cash into stablecoins via shops. Source: ZAR website

ZAR was co-founded by Sebastian Scholl and Brandon Timinsky, who sold their mobile wallet startup SadaPay to Turkey’s Papara in 2024. The company has raised $20 million in total and plans to expand its model to African markets in 2026 if the pilot in Pakistan proves successful.

The funding comes as Pakistan moves toward regulating virtual assets. Earlier this year, the government launched the Pakistan Virtual Assets Regulatory Authority (PVARA), a body tasked with overseeing the country’s digital asset industry.

Last month, Pakistan also opened the door to international crypto businesses, inviting leading exchanges and virtual asset service providers (VASPs) to apply for licenses under a new federal regime.

Related: Retail crypto TXs have doubled on regulatory clarity: TRM Labs

Pakistan ranks high in global crypto adoption

As Cointelegraph reported, Pakistan surged to third place in Chainalysis’ 2025 Global Crypto Adoption Index, climbing six spots and emerging as one of the world’s fastest-growing crypto markets.

Pakistan ranks third in global crypto adoption. Source: Bilal Bin Saqib

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