ZAR, a startup focused on expanding the use of stablecoins in emerging markets, has secured $12.9 million in a funding round led by Andreessen Horowitz, Bloomberg reported. Other investors in the round include Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst.
The company, founded just a year ago, aims to introduce dollar-backed digital currencies to Pakistan, a country with the third-largest unbanked population globally, according to World Bank estimates.
Unlike other companies pushing stablecoins through large financial platforms, ZAR plans to integrate the technology into Pakistan’s everyday economy by leveraging the country’s extensive network of mobile phone kiosks, convenience stores, and money agents.
The funding round comes as Pakistan shows growing interest in digital currencies. In a bid to modernize its banking system, Pakistan introduced the Virtual Assets Ordinance this year, providing a legal framework for the regulation and use of digital currencies.
ZAR’s platform allows users to exchange cash for digital dollars at local shops, using a simple QR code scan. The digital funds are then stored in a mobile wallet linked to a Visa card, enabling global spending without the need for in-depth knowledge of blockchain technology.
“Over a billion people in regions like Asia, Africa, and Latin America live in cash economies, where traditional banking services are unreliable, and inflation erodes savings. Access to stable currencies like the US dollar is often limited,” ZAR said in a statement. “Our solution helps bridge this gap by offering easy access to dollars for transactions, purchases, and cross-border business.”
If successful in Pakistan, ZAR plans to expand its model to Africa in 2026. The startup has raised a total of $20 million since its inception.
