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 currencies accessible to everyday consumers in Pakistan and other emerging markets.
The round drew participation from Dragonfly Capital, Vaneck Ventures, Coinbase Ventures and Endeavor Catalyst, according in a Tuesday Bloomberg report. The startup targets the 240 million people of Pakistan, where the World Bank Estimates More than 100 million adults remain unaffected.
Unlike many crypto companies that focus on apps or global exchanges, ZAR plans to distribute StableCoins through local stores, phone kiosks and money agents, the same network used for mobile top-ups and remittances.
The company said it hopes this approach will help citizens access digital currency without requiring them to understand blockchain or crypto technology, per the report.
Related: Crypto helps emerging economies overcome financial barriers
ZAR allows users to exchange cash for StableCoins
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 that can be used worldwide. Zar launched its platform earlier this year and says it’s seeing strong early traction in Pakistan’s urban centers.
Zar was co-founded by Sebastian Scholl and Brandon Timinsky, who sold Their mobile wallet startup Sadapay in 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 pilot in Pakistan proves successful.
The funding comes as Pakistan moves towards regulating virtual assets. Earlier this year, the government Pakistan Virtual Asset Regulatory Authority (PVARA) launcheda body tasked with overseeing the country’s digital asset industry.
Last month, Pakistan also opened the door to international crypto businesses, inviting top exchanges and Virtual Asset Service Providers (VASPs) to apply for licenses under a new federal regime.
Related: Retail crypto txs doubled in regulatory clarity: TRM Labs
Pakistan ranks high in global crypto adoption
As reported by Cointelegraph, Pakistan Surged to third place in chainalysis’ 2025 Global Crypto Adoption Indexclimbing six spots and emerging as one of the fastest growing crypto markets in the world.
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