Venture capital powerhouse Andreessen Horowitz (a16z) is spearheading a $12.9 million funding round for ZAR, a year-old fintech startup that aims to provide dollar-backed stablecoins to everyday consumers in Pakistan and other emerging markets.
This funding round saw participation from Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst, according to a Bloomberg report released on Tuesday. The startup aims to reach Pakistan’s population of 240 million, where the World Bank estimates that over 100 million adults lack access to banking services.
In contrast to many crypto firms that focus on mobile apps or global exchanges, ZAR intends to distribute stablecoins via local convenience stores, phone kiosks, and money agents—similar to the networks used for mobile top-ups and remittances.
The company aims to simplify access to dollar-backed digital currency without requiring consumers to grasp blockchain or cryptocurrency technology, as reported.
Related: Crypto enables emerging economies to transcend traditional financial barriers
ZAR facilitates cash-to-stablecoin exchanges
Users can visit a participating store, scan a QR code, and trade cash for stablecoins stored in a mobile wallet linked to a Visa card usable globally. ZAR launched its services earlier this year and reports robust early engagement in urban areas of Pakistan.
ZAR was co-founded by Sebastian Scholl and Brandon Timinsky, who previously sold their mobile wallet platform SadaPay to Turkey’s Papara in 2024. The company has raised a total of $20 million and aims to expand its operations to African markets in 2026 if the pilot in Pakistan is successful.
This funding comes as Pakistan progresses towards the regulation of virtual assets. Earlier this year, the government established the Pakistan Virtual Assets Regulatory Authority (PVARA), a body designated to oversee the country’s digital asset sector.
Last month, Pakistan also opened its doors to international crypto enterprises, inviting leading exchanges and virtual asset service providers (VASPs) to apply for licenses under a new federal framework.
Related: Retail crypto transactions have doubled thanks to regulatory transparency: TRM Labs
Pakistan excels in global crypto adoption
As reported by Cointelegraph, Pakistan climbed to third place in Chainalysis’ 2025 Global Crypto Adoption Index, rising six spots and emerging as one of the fastest-growing crypto markets globally.
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