ZAR's $12.9M Stablecoin Strategy Aims to Unlock Pakistan's Unbanked Economy

Stablecoin Startup ZAR Raises $12.9 Million in Funding, Led by a16z

Andreessen Horowitz (a16z) has led a $12.9 million funding round for ZAR, a fintech startup aiming to bring dollar-backed stablecoins to Pakistan's unbanked population through local retail networks. The round also included participation from Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst, according to reports from Cointelegraph, Coinotag, and Lookonchain. ZAR plans to leverage Pakistan's existing infrastructure of mobile kiosks, corner stores, and money agents to distribute stablecoins, enabling users to convert cash into digital dollars via QR code scans and store them in mobile wallets linked to global Visa cards, according to Bloomberg.

The startup's model targets Pakistan's estimated 100 million unbanked adults, as noted by the World Bank in a Coinotag piece. Unlike traditional crypto platforms that rely on apps or exchanges, ZAR's approach integrates stablecoins into everyday retail interactions, bypassing the need for users to navigate blockchain technology. Users can walk into participating stores, scan a QR code, and exchange cash for stablecoins, which can then be spent locally or accessed globally through Visa-linked cards. This strategy mirrors the success of mobile money systems in Africa, where localized distribution networks have driven adoption.

ZAR was co-founded by Sebastian Scholl and Brandon Timinsky, who previously sold their mobile wallet startup SadaPay to Turkey's Papara in 2024, as reported by Cointelegraph. The company has raised a total of $20 million to date and aims to expand to African markets in 2026 if the Pakistan pilot proves successful, according to the Coinotag coverage. The funding comes as Pakistan moves to regulate virtual assets, with the government establishing the Virtual Assets Regulatory Authority (PVARA) earlier this year and inviting international firms to apply for licenses under a new framework, per Bloomberg.

The startup's strategy aligns with broader trends in emerging markets, where stablecoins are increasingly seen as a bridge between cash-based economies and digital finance. Pakistan ranks third in Chainalysis' 2025 Global Crypto Adoption Index, driven by economic pressures and the need for reliable value storage, a point highlighted in Coinotag's reporting. ZAR's model also benefits from Pakistan's regulatory progress, which balances innovation with consumer protection, as covered by Bloomberg.

With the latest funding, ZAR plans to scale its operations, including enhancing wallet security and training merchants. The company's focus on accessibility and infrastructure integration positions it to address financial inclusion challenges in regions with limited banking access. As stablecoin adoption grows, ZAR's approach highlights the potential for localized strategies to drive mainstream use in emerging economies.