ZAR secured $12.9M, led by a16z, to bring dollar-backed stablecoins to unbanked consumers in Pakistan via local kiosks.
Fintech startup ZAR successfully raised $12.9 million this week. The funding round was led by venture capital giant Andreessen Horowitz (a16z). ZAR is a company that is focused on democratizing access to dollar-backed stablecoins. So, the target market is the consumers of Pakistan and other emerging countries.
a16z Leads Major Round to Target Global Unbanked Population
According to Bloomberg, the round was attended by several companies. In addition, they had Dragonfly Capital and VanEck Ventures. Also, Coinbase Ventures and Endeavour Catalyst participated in the round. So, this solid support validates the strong interest in the markets. The investment shows a strong faith in ZAR’s mission.
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Overall, the startup is aggressively targeting Pakistan’s 240 million population currently. At the same time, the World Bank estimates that more than 100 million adults are still unbanked in the country. Furthermore, it is also a massive growth opportunity. Thus, ZAR is interested in the widespread testing of dollar-pegged digital coins.
Unlike other companies, ZAR has a different approach at present. They are looking for local agents to popularize stablecoins. All of these agents have easy access to thousands of convenience stores and money kiosks. As such, in our day-to-day lives, this network is the foundation of everything.
The new investment will actively develop stablecoin use around the world. Specifically, funds will be used to finance offline exchange using local shops. Also, remittance agents and kiosks will be important partners. This platform enables users to trade cash to stablecoins instantly.
Hence, the mobile wallet enables the usage of stablecoins around the globe. This is done using a Visa card that is directly connected to the system. Moreover, this integration ensures the seamless integration of traditional finance with digital assets. Hence, consumers are provided with dollar stability and world mobility.
Local Kiosk Strategy Leverages New Regulatory Framework
At the same time, this fundraising now takes place against a major regulatory shift background. In effect, the Virtual Assets Ordinance 2025 came into force in July 2025. Furthermore, this offers a long-overdue legal structure. It aims at regulation of digital currencies in a consistent manner. As a result, the new transparency provides a positive operating environment.
Specifically, the new law formed a new body now. This body is known as Pakistan Virtual Asset Regulatory Authority (PVARA). As a result, crypto-related activities are required to be regulated by PVARA. The government wants to proactively deal with digital asset liabilities.
In the meantime, ZAR’s strategy is heavily geared towards the unbanked population. More than 100 million adults are without access to banking today, the World Bank estimates. Also, ZAR is eager to actively reduce financial exclusion. The platform provides easily available stablecoin backed by a dollar. This can be used to drastically increase stability in everyday economics.
The decision of a16z to lead the round is critical at this moment. The investment is a good sign of institutional confidence in this model in general. Furthermore, it shows that there is value in local distribution from the perspective of venture capital.
As a result, the $12.9 million investment is not only for Pakistan. It also allows ZAR to grow into other new markets in the world. The firm wants to replicate its model in another place successfully. Therefore, the emphasis is still on consumers who have no stable access to currency.
This fundraising campaign is a new landmark in itself. It can successfully confirm the business model for using local networks. The collaboration between international VCs and a local fintech is a vital element. Overall, ZAR is creating a bridge to global dollar liquidity.
