ZAR's $12.9M Stablecoin Initiative Seeks to Open Access to Pakistan's Unbanked Financial Sector

Stablecoin Startup ZAR Secures $12.9 Million Investment, a16z Leads the Round

Venture capital giant Andreessen Horowitz (a16z) has spearheaded a $12.9 million investment in ZAR, a fintech company focused on introducing dollar-pegged stablecoins to Pakistan’s large unbanked demographic by utilizing local retail channels. Other investors in this round include Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst, as reported by

, , and . ZAR intends to use Pakistan’s widespread network of mobile kiosks, neighborhood shops, and money agents to distribute stablecoins, letting users turn cash into digital dollars by scanning QR codes and storing funds in mobile wallets connected to international Visa cards, according to .

The company’s approach is designed for Pakistan’s roughly 100 million adults without bank accounts, a figure cited by the World Bank in a Coinotag article. Unlike conventional crypto services that depend on apps or exchanges, ZAR embeds stablecoins into daily retail transactions, eliminating the need for users to understand blockchain technology. Customers can visit partner stores, use a QR code to swap cash for stablecoins, and then spend them locally or access them worldwide via Visa-linked cards. This model draws inspiration from Africa’s mobile money platforms, where community-based distribution has fueled widespread adoption.

ZAR was established by Sebastian Scholl and Brandon Timinsky, who previously sold their mobile wallet venture SadaPay to Turkey’s Papara in 2024, as detailed by Cointelegraph. To date, the startup has secured $20 million in funding and plans to enter African markets in 2026 if its pilot program in Pakistan is successful, according to Coinotag. This investment comes as Pakistan advances its virtual asset regulations, with the government launching the Virtual Assets Regulatory Authority (PVARA) earlier this year and inviting global companies to seek licenses under new guidelines, per Bloomberg.

The company’s business model reflects a broader movement in developing economies, where stablecoins are increasingly viewed as a link between cash-based societies and digital financial services. Pakistan is ranked third in Chainalysis’ 2025 Global Crypto Adoption Index, propelled by economic challenges and the demand for stable value storage, as noted in Coinotag’s coverage. ZAR also benefits from Pakistan’s evolving regulatory landscape, which seeks to balance innovation with consumer safeguards, according to Bloomberg.

With this fresh capital, ZAR aims to expand its reach, strengthen wallet security, and provide merchant training. By prioritizing accessibility and integrating with existing infrastructure, the company is positioned to tackle financial inclusion issues in areas with limited access to traditional banking. As stablecoins gain traction, ZAR’s localized approach demonstrates how tailored solutions can accelerate mainstream adoption in developing regions.