Venture capital leader Andreessen Horowitz (a16z) is spearheading a $12.9 million funding round for ZAR, a fintech startup just one year old, aiming to provide dollar-backed stablecoins to everyday consumers in Pakistan and other developing markets.
The funding round included participation from Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst, according to a Bloomberg report released on Tuesday. ZAR is focusing on Pakistan’s 240 million citizens, where the World Bank estimates that over 100 million adults are unbanked.
Different from many crypto firms that focus on applications or global exchanges, ZAR intends to distribute stablecoins via local shops, phone kiosks, and money agents, the same network utilized for mobile top-ups and remittances.
The company hopes this strategy will enable citizens to access dollar-backed digital currency without needing to understand blockchain or cryptocurrency technology, according to the report.
Related: Crypto assists emerging economies in bypassing traditional financial barriers
ZAR allows users to exchange cash for stablecoins
Users can enter a participating retail location, scan a QR code, and convert cash into stablecoins stored in a mobile wallet linked to a Visa card usable globally. ZAR launched its platform earlier this year and reported strong initial traction in urban areas of Pakistan.
ZAR was co-founded by Sebastian Scholl and Brandon Timinsky, who sold their mobile wallet startup SadaPay to Turkey’s Papara in 2024. To date, the company has secured $20 million in total funding and plans to extend its model to African markets in 2026, contingent on the success of its pilot in Pakistan.
This funding comes as Pakistan progresses towards regulating virtual assets. Earlier this year, the government established the Pakistan Virtual Assets Regulatory Authority (PVARA), tasked with overseeing the nation’s digital asset sector.
Last month, Pakistan also opened its doors to international crypto firms, inviting leading exchanges and virtual asset service providers (VASPs) to apply for licenses under a new federal framework.
Related: Retail crypto transactions have doubled following regulatory clarity: TRM Labs
Pakistan ranks highly in global crypto adoption
As Cointelegraph highlighted, Pakistan soared to third place in Chainalysis’ 2025 Global Crypto Adoption Index, ascending six spots and becoming one of the fastest-growing crypto markets worldwide.
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