TL;DR
- ZAR closes a $12.9 million funding round led by Andreessen Horowitz to provide stablecoins to unbanked citizens in Pakistan.
- The fintech allows users to convert cash into stablecoins at local stores and kiosks using a mobile wallet linked to a Visa card, without requiring knowledge of blockchain technology.
- The pilot will take place in Pakistan, and if successful, it could be replicated in Africa in 2026.
ZAR, a one-year-old fintech, closed a $12.9 million financing round led by Andreessen Horowitz to expand the use of dollar-backed stablecoins in Pakistan.
The company, co-founded by Sebastian Scholl and Brandon Timinsky, aims to deliver digital money to unbanked citizens through local stores, phone kiosks, and money agents, leveraging the country’s existing payment infrastructure. The startup has raised a total of $20 million since its founding and plans to replicate its model in Africa in 2026 if the pilot in Pakistan proves successful.
From Cash to Stablecoins
ZAR’s model allows users to enter a participating shop, scan a QR code, and hand over cash in exchange for stablecoins stored in a mobile wallet linked to a globally accepted Visa card.
This enables access to digital money without requiring knowledge of blockchain or cryptocurrencies, facilitating adoption among the general population and strengthening financial inclusion. The platform has already demonstrated its potential in urban centers across Pakistan, particularly in areas with high concentrations of unbanked residents.
Pakistan has over 240 million inhabitants, more than 100 million of whom lack access to traditional banking services, making it one of the most promising markets for digital money solutions.
ZAR: A Vehicle for Financial Inclusion
ZAR’s initiative seeks to capitalize on the country’s regulatory progress. Pakistan established the Virtual Assets Ordinance and created the Pakistan Virtual Assets Regulatory Authority (PVARA) to regulate and legalize the use of digital assets. The government also invited international crypto firms to obtain licenses under a new federal framework, providing fertile ground for integrating stablecoins into the local economy. The country ranked third in Chainalysis’ 2025 Global Crypto Adoption Index, climbing six positions in a year.
Unlike other projects focused on apps or exchanges, ZAR aims to distribute digital money through the local retail network, mirroring daily cash flows and mobile top-ups to integrate stablecoins into the everyday lives of millions. Its strategy could set a precedent for mass cryptocurrency adoption in emerging markets.
Scholl and Timinsky intend for ZAR to function not just as a payment platform but as a financial inclusion vehicle capable of putting digital dollars into the hands of those traditionally excluded from the banking system
