Andreessen Horowitz Leads Funding for ZAR
Venture capital giant Andreessen Horowitz (a16z) is spearheading a $12.9 million investment in ZAR, a fintech startup aiming to bring dollar-backed stablecoins to consumers in Pakistan and other developing markets.
The funding round also included participation from notable firms like Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst, as reported by Bloomberg on Tuesday. ZAR is targeting Pakistan’s 240 million population, where the World Bank estimates that over 100 million adults lack access to banking services.
Differing from many crypto enterprises that prioritize apps or global trading platforms, ZAR plans to distribute stablecoins via local retail outlets, mobile top-up kiosks, and money agents—similar to existing networks used for remittances and phone credit top-ups.
This strategy aims to enable citizens to access dollar-backed digital currency without needing a deep understanding of blockchain technology, according to the report.
ZAR Allows Cash to Stablecoin Exchanges
Customers can visit a participating location, scan a QR code, and convert cash into stablecoins which are stored in a mobile wallet linked to a Visa card valid globally. ZAR has commenced its platform earlier this year, reporting positive initial engagement in urban areas of Pakistan.
ZAR allows users to turn cash into stablecoins via shops. Source: ZAR website
ZAR was co-founded by Sebastian Scholl and Brandon Timinsky, who previously sold their mobile wallet firm SadaPay to Turkey’s Papara in 2024. In total, the company has raised $20 million and plans to extend its operations into African markets by 2026, contingent upon the success of its pilot in Pakistan.
This investment arrives as Pakistan heads towards formalizing regulations surrounding digital assets. Earlier this year, the government established the Pakistan Virtual Assets Regulatory Authority (PVARA) to supervise its digital asset sector. Last month, Pakistan welcomed international cryptocurrency firms, encouraging them to apply for operating licenses under a new federal framework.
Pakistan’s Growing Crypto Landscape
According to past reports from Cointelegraph, Pakistan has achieved a prominent position in the 2025 Global Crypto Adoption Index by Chainalysis, placing third overall, reflecting its rapid growth within the crypto market.
