Venture capital powerhouse Andreessen Horowitz (a16z) has spearheaded a $12.9 million funding round for ZAR, a fintech startup aiming to democratize access to dollar-backed stablecoins for consumers in Pakistan and other emerging markets. This significant investment underscores the growing interest in leveraging digital assets to address financial inclusion challenges in underserved populations.
Key Takeaways
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A16z led a $12.9 million funding round for ZAR.
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ZAR aims to provide stablecoin access to Pakistan's unbanked population.
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The startup plans to distribute stablecoins through local retail networks.
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Pakistan is showing increasing adoption and regulatory movement in the crypto space.
Expanding Financial Access Through Local Networks
ZAR's innovative approach bypasses traditional digital platforms, focusing instead on leveraging Pakistan's existing network of local stores, phone kiosks, and money agents – the same channels used for mobile top-ups and remittances. This strategy is designed to make dollar-backed digital money accessible to millions of unbanked adults in Pakistan, estimated by the World Bank to be over 100 million. Users can reportedly exchange cash for stablecoins at participating shops by scanning a QR code, with the stablecoins stored in a mobile wallet connected to a Visa card for worldwide use.
Strategic Investment and Market Potential
The funding round saw participation from notable investors including Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst. ZAR, co-founded by Sebastian Scholl and Brandon Timinsky (who previously sold their mobile wallet startup SadaPay), has now raised a total of $20 million. The company has ambitious plans to expand its model to African markets in 2026, contingent on the success of its pilot program in Pakistan. The startup is already reporting strong early traction in Pakistan's urban centers.
Pakistan's Evolving Crypto Landscape
This investment arrives at a pivotal moment for Pakistan's digital asset sector. The country has recently established the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee its digital asset industry and has opened its doors to international crypto businesses seeking licenses under a new federal regime. Furthermore, Pakistan has surged to third place in Chainalysis' 2025 Global Crypto Adoption Index, highlighting its rapid growth and significant engagement with cryptocurrency markets.
Sources
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A16z leads $12.9M round for ZAR to bring stablecoins to Pakistan’s unbanked — TradingView News, TradingView.
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Andreessen Backs Startup Exploring Stablecoins in Pakistan, Bloomberg.com.
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A16z leads $12.9M round for ZAR to bring stablecoins to Pakistan’s unbanked, Crypto Adventure.
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