a16z Leads $12.9 Million Round to Help ZAR Bring Stablecoins to Pakistan

Highlights:

• a16z leads $12.9 million round to support ZAR’s digital currency launch in Pakistan.
• Over 100M adults in Pakistan remain unbanked, creating high digital finance demand.
• ZAR plans to enter African markets next year after its Pakistan pilot phase.

Andreessen Horowitz (a16z) has led a $12.9 million funding round for ZAR, a fintech startup focused on introducing dollar-backed stablecoins to users in Pakistan and other developing markets. Bloomberg reported that Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst also participated in the round.

Pakistan has about 240 million people and struggles with financial access. The World Bank says over 100 million adults in the country cannot use traditional banks. ZAR plans to solve this problem by providing dollar-backed stablecoins through everyday retail points like local shops, phone booths, and money agents, often used for mobile recharges and sending money.

ZAR has raised $12.9 million to bring ROCK. SOLID. DOLLARS. to the Global South 💵🌍

Led by @a16zcrypto, with @dragonfly_xyz, @vaneck_us, @cbVentures, and Endeavor Catalyst.

🧵👇 pic.twitter.com/0DKOlWMwSO

— ZAR (@zardotapp) October 28, 2025

ZAR Introduces Simple Cash-to-Stablecoin Access

ZAR’s model differs from most crypto startups focused on global exchanges or mobile apps. The platform allows users to visit a participating store, scan a QR code, and exchange cash for stablecoins. The digital funds are stored in a mobile wallet linked to a Visa card that can be used internationally. The company launched its service earlier this year and has already reported growing traction in major Pakistani cities. ZAR makes it easy for people to use stablecoins without knowing about blockchain.

ZAR was founded by entrepreneurs Sebastian Scholl and Brandon Timinsky, who previously co-founded SadaPay, a mobile wallet startup acquired by Turkey’s Papara last year. With this latest round, ZAR’s total funding now stands at $20 million. The firm intends to expand its operations to select African markets in 2026, depending on the success of its Pakistan rollout.

Pakistan Moves Toward Crypto Regulation

The funding comes at a time when Pakistan is actively developing its digital asset regulatory framework. Earlier this year, authorities launched the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee crypto-related activities in the country.

In recent months, the government has also invited foreign crypto exchanges and virtual asset service providers to apply for operational licenses under a new federal framework. PVARA Chairman Bilal bin Saqib said the move aims to build a transparent and inclusive digital financial system in Pakistan.

In March, Pakistan formed the Crypto Council to design crypto-friendly regulations. A month later, Binance co-founder Changpeng Zhao joined as an adviser to guide on blockchain and digital asset policies. Previously, the government revealed plans to establish a Bitcoin Strategic Reserve managed by state authorities. Pakistan also assigned 2,000 megawatts of electricity to support Bitcoin mining and Artificial Intelligence centers.

Today, 🇵🇰 rewrites history.

At Bitcoin 2025 Vegas, Minister of Crypto and Blockchain @bilalbinsaqib announces that Pakistan will be setting up its Strategic Bitcoin Reserve. pic.twitter.com/1vNjryqimf

— Pakistan Crypto Council (@cryptocouncilpk) May 29, 2025

These recent steps mark an important move toward legalizing and supervising the sector’s expansion. According to the 2025 Global Crypto Adoption Index by Chainalysis, Pakistan ranks third worldwide, advancing six spots from the previous year. The rapid growth in adoption reflects the country’s increasing interest in dollar-backed digital assets amid currency challenges and limited banking access.