Venture capital giant Andreessen Horowitz is spearheading a $12.9 million funding round for ZAR, a one-year-old fintech startup working to make dollar-backed stablecoins accessible to everyday consumers in Pakistan and emerging markets. The round included participation from Dragonfly Capital, VanEck Ventures, Coinbase Ventures and Endeavor Catalyst.
Targeting Pakistan's Unbanked Population
The startup targets Pakistan's 240 million population, where the World Bank estimates over 100 million adults remain unbanked. ZAR plans to distribute stablecoins through local stores, phone kiosks, and money agents, the same network currently used for mobile top-ups and remittances.
Users can enter a participating shop, scan a QR code, and exchange cash for stablecoins stored in a mobile wallet connected to a Visa card usable worldwide. The approach aims to help citizens access dollar-backed digital money without requiring them to understand blockchain or crypto technology.
Company Background and Expansion Plans
ZAR was co-founded by Sebastian Scholl and Brandon Timinsky, who sold their mobile wallet startup SadaPay to Turkey's Papara in 2024. The company has raised $20 million in total and plans to expand its model to African markets in 2026 if the Pakistan pilot proves successful.
Regulatory Advancements in Pakistan
The funding arrives as Pakistan advances toward regulating virtual assets. Earlier this year, the government launched the Pakistan Virtual Assets Regulatory Authority, a body 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 to apply for licenses under a new federal regime. The move represents a significant shift in the country's approach to digital asset regulation.
Pakistan's Growing Crypto Adoption
Pakistan surged to third place in Chainalysis' 2025 Global Crypto Adoption Index, climbing six spots and emerging as one of the world's fastest-growing crypto markets. The ranking reflects growing interest in digital assets among Pakistani citizens seeking alternatives to traditional banking infrastructure.
ZAR's Early Traction and Strategy
ZAR launched its platform earlier this year and reported strong early traction in Pakistan's urban centers. The startup's distribution strategy leverages existing retail infrastructure to bypass the need for sophisticated technical knowledge among users.