A16z Leads $12.9 Million Funding Round for ZAR to Bring Stablecoins to Pakistan’s Unbanked Population

A16z leads $12.9 million funding round for ZAR to bring stablecoins to Pakistan’s unbanked

Venture capital firm Andreessen Horowitz (a16z) is spearheading a significant $12.9 million investment in ZAR, a fintech startup launched just a year ago. ZAR aims to make dollar-backed stablecoins available to consumers in Pakistan and other emerging markets. With the participation of notable partners such as Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst, this funding is poised to help address the financial needs of Pakistan’s unbanked population, estimated to be over 100 million adults.

Key Takeaways

A16z is leading a $12.9 million funding round for ZAR, a fintech startup aiming to make stablecoins available in Pakistan.
ZAR intends to distribute stablecoins via local stores and agents, making it easier for users to adopt this technology.
Users can swap cash for stablecoins using a mobile wallet linked to a Visa card.
ZAR is targeting not just Pakistan but plans to expand into African markets if their pilot is successful.
Pakistan has recently moved toward regulating virtual assets, further enhancing its growing crypto market.

ZAR’s Innovative Approach to Stablecoins

ZAR differentiates itself from many other crypto enterprises by focusing not just on mobile apps or global exchanges but by engaging with local communities. The startup's goal is to enable users to use stablecoins effortlessly by exchanging cash at nearby shops, phone kiosks, and money agents—similar to systems used for mobile top-ups and remittances. This method is designed to help individuals access dollar-backed digital currency without the need for intricate knowledge of blockchain or cryptocurrency, according to a report from Bloomberg.

Cash to Stablecoin Exchange

To use ZAR, customers can visit a participating shop, scan a QR code, and exchange cash for stablecoins. The stablecoins are managed within a mobile wallet that is connected to a Visa card, allowing for global usability. Launched earlier this year, ZAR has reported strong initial interest in urban areas of Pakistan.

ZAR allows users to turn cash into stablecoins via shops. Source: ZAR website

Founders and Future Expansion

ZAR was co-founded by Sebastian Scholl and Brandon Timinsky, who previously sold their mobile wallet venture SadaPay to Turkey’s Papara last year. So far, the company has secured $20 million in funding and is eyeing an expansion into African markets in 2026, contingent on the success of its pilot program in Pakistan.

Regulatory Landscape in Pakistan

This investment arrives as Pakistan is taking significant steps toward regulating virtual assets. Earlier this year, the Pakistan Virtual Assets Regulatory Authority (PVARA) was established to oversee the nation’s digital asset sector. Additionally, recent government initiatives have welcomed international crypto firms, inviting them to apply for licenses under a newly created federal regulatory framework.

Growing Crypto Adoption in Pakistan

As noted by Cointelegraph, Pakistan has made notable strides in cryptocurrency adoption, ranking third in Chainalysis’ 2025 Global Crypto Adoption Index. This marks a jump of six places, solidifying its status as one of the fastest-growing crypto markets in the world.

Pakistan ranks third in global crypto adoption. Source: Bilal Bin Saqib

This progress highlights the increasing relevance of cryptocurrency, particularly in regions where traditional banking services may not be accessible. The collaboration between ZAR and its investors could pave the way for more financial innovations that cater to unbanked populations.