Venture capital giant Andreessen Horowitz (a16z) is leading a $12.9 million funding round for ZAR, a one-year-old fintech startup that aims to make dollar-backed stablecoins accessible to everyday consumers in Pakistan and other emerging markets.
Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst participated in the round, Bloomberg reported Tuesday. The startup targets Pakistan's 240 million people, but the World Bank estimates that more than 100 million adults remain unbanked.
Unlike many cryptocurrency companies that focus on apps and global exchanges, ZAR plans to distribute stablecoins through local stores, phone kiosks, and money agents, the same network used for mobile top-ups and money transfers.
The company said it hopes this approach will allow the public to access dollar-backed digital money without the need to understand blockchain or cryptography, according to the report.
Related: Cryptocurrency helps emerging economies avoid traditional financial constraints
ZAR allows users to exchange cash for stablecoins
Users can enter a participating store and scan a QR code to 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 said it is seeing strong initial traction in Pakistan's urban centers.
ZAR allows users to convert cash into stablecoins through stores. sauce: ZAR website
ZAR was co-founded by Sebastian Scholl and Brandon Tyminski, who sold mobile wallet startup SadaPay to Turkey's Papara in 2024. The company has raised a total of $20 million and plans to expand its model to African markets in 2026 if the Pakistan pilot is successful.
The funding comes as Pakistan moves towards regulating virtual assets. Earlier this year, the government launched the Pakistan Virtual Assets Regulatory Authority (PVARA), an agency tasked with overseeing the country's digital asset industry.
Pakistan also opened its doors to international cryptocurrency businesses last month, inviting major exchanges and virtual asset service providers (VASPs) to apply for licenses under the new federal regime.
Related: Retail Cryptocurrency TX Doubles on Regulatory Clarity: TRM Labs
Pakistan ranks among the top in global cryptocurrency adoption
As reported by Cointelegraph, Pakistan has jumped to third place on Chainalysis' 2025 Global Crypto Adoption Index, moving up six places and emerging as one of the fastest growing crypto markets in the world.
Pakistan ranks third in global cryptocurrency adoption. sauce: bil bin saudi
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