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 also saw participation from Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst, according to a Tuesday report by Bloomberg.
ZAR is targeting Pakistan’s population of 240 million, where the World Bank estimates that over 100 million adults remain unbanked. Unlike many crypto companies that focus on apps or global exchanges, ZAR plans to distribute stablecoins through local corner stores, phone kiosks, and money agents—the same network used for mobile top-ups and remittances.
The company hopes this approach will help citizens access dollar-backed digital money without requiring them to understand blockchain or crypto technology, according to the report.
### How ZAR Works: Swapping Cash for Stablecoins
Users can walk into a participating shop, scan a QR code, and exchange cash for stablecoins stored in a mobile wallet connected to a Visa card that can be used worldwide. ZAR launched its platform earlier this year and reports strong early traction in Pakistan’s urban centers.
### Founders and Funding
ZAR was co-founded by Sebastian Scholl and Brandon Timinsky, who previously sold their mobile wallet startup SadaPay to Turkey’s Papara in 2024. To date, the company has raised a total of $20 million and plans to expand its model to African markets in 2026 if the pilot in Pakistan proves successful.
### Regulatory Environment in Pakistan
This funding round comes as Pakistan moves toward regulating virtual assets. Earlier this year, the government launched the Pakistan Virtual Assets Regulatory Authority (PVARA), tasked with overseeing the country’s digital asset industry.
Last month, Pakistan opened the door to international crypto businesses by inviting leading exchanges and virtual asset service providers (VASPs) to apply for licenses under a new federal regulatory regime.
### Pakistan’s Growing Role in Global Crypto Adoption
According to Cointelegraph, Pakistan surged to third place in Chainalysis’ 2025 Global Crypto Adoption Index. The country climbed six spots to emerge as one of the world’s fastest-growing crypto markets.
As regulatory clarity improves and fintech innovation accelerates, startups like ZAR are poised to play a significant role in driving digital financial inclusion across emerging economies.
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