Venture capital firm Andreessen Horowitz (a16z) has led a $12.9 million funding round for ZAR, a fintech startup focused on bringing dollar-backed stablecoins to everyday consumers across Pakistan and other emerging markets.
According to a Tuesday report from Bloomberg, the round also included participation from Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst. ZAR is targeting Pakistan’s 240 million residents, where the World Bank estimates over 100 million adults remain outside the formal banking system.
Unlike most crypto firms that rely on apps or exchanges, ZAR plans to distribute stablecoins through local stores, phone kiosks, and money agents—the same infrastructure used for mobile top-ups and remittances. The company says this model allows people to access digital dollars without needing prior knowledge of blockchain or crypto technology.
ZAR enables cash-to-stablecoin swaps
Through ZAR’s system, users can visit a participating store, scan a QR code, and exchange cash for stablecoins held in a mobile wallet linked to a Visa card, usable for transactions worldwide.
Launched earlier this year, ZAR reports strong early adoption in Pakistan’s urban centers, positioning itself as a bridge between cash economies and digital finance in one of the world’s largest unbanked markets.
ZAR, co-founded by Sebastian Scholl and Brandon Timinsky, has now raised a total of $20 million following its latest funding round. The duo previously founded SadaPay, a mobile wallet startup acquired by Turkey’s Papara in 2024. Building on their success, ZAR aims to expand its stablecoin distribution model to African markets by 2026, contingent on the success of its pilot program in Pakistan.
The funding arrives as Pakistan advances efforts to regulate digital assets. Earlier this year, the government established the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee the nation’s emerging crypto and digital asset sector.
In a further step toward fostering innovation, Pakistan recently invited global crypto exchanges and virtual asset service providers (VASPs) to apply for licenses under a new federal regulatory framework.
Pakistan rises as a crypto adoption leader
According to Chainalysis’ 2025 Global Crypto Adoption Index, Pakistan now ranks third globally, up six positions from the previous year. The surge highlights the country’s rapid embrace of digital finance and its growing role as one of the world’s fastest-expanding crypto markets.
