Stablecoin lands in Pakistan: a16z leads ZAR 12.9 million financing to expand into emerging markets

The well-known venture capital firm Andreessen Horowitz led a funding round for a startup called ZAR, which is dedicated to promoting the use of stablecoins through mobile shops, convenience stores, and currency exchange points on the streets of Pakistan. This company, which was established only a year ago, has just completed a $12.9 million funding round and plans to test a USD-backed digital Token in Pakistan, which has the third largest unbanked population globally, and aims to enter the African market by 2026.

Financing Background and Investment Lineup: Top Venture Capitalists Favor Emerging Market Digital Dollar

In the latest round of financing, ZAR successfully raised $12.9 million, attracting participation from several well-known investment institutions. In addition to the lead investor a16z, this round of financing also attracted follow-on investments from institutions such as Dragonfly Capital, VanEck Ventures, and Endeavor Catalyst.

It is worth noting that this startup has raised a total of $20 million since its establishment, demonstrating the recognition of the capital market for its business model. The strong lineup of investors also reflects institutional investors' optimism about the application scenarios of digital dollars in emerging markets.

Business Model Innovation: Community Stores at the Forefront of Stablecoin Promotion

Unlike other companies that promote stablecoins through large retail or financial platforms, ZAR has chosen a more grounded approach. The company plans to build its service network using the thousands of mobile booths, convenience stores, and currency agent points that are indispensable in daily life in Pakistan.

The specific operational process design is extremely simple: users walk into a local store, scan a QR code, and pay cash to exchange for digital dollars to be deposited into a mobile wallet. This design allows users to easily use digital dollars for consumption without needing to understand the complex principles behind stablecoins or blockchain technology.

To enhance practicality, ZAR has also connected its wallet with the globally accepted Visa card, greatly expanding its use cases. This “online exchange, offline consumption” model is expected to open new payment pathways in regions with weak financial infrastructure.

Policy Environment and Market Opportunities: Pakistan Embraces Digital Assets

The financing of ZAR coincides with a favorable time as the Pakistani government increases its support for digital currencies. Like other emerging markets, Pakistan is exploring various ways to compensate for the shortcomings of traditional banking infrastructure.

This year, Pakistan established the “Virtual Assets Ordinance”, which is a key step in legalizing and regulating digital currency. The establishment of this regulatory framework provides institutional support for the compliant operations of innovative enterprises such as ZAR.

According to World Bank data, Pakistan has the third-largest unbanked population in the world, which provides significant market space for digital financial solutions. The large population base combined with underdeveloped traditional banking services creates an ideal environment for the development of ZAR business.

Founding Team and Expansion Plan: From Pakistan to Africa

ZAR was co-founded by Sebastian Scholl and Brandon Timinsky, both of whom have extensive experience in the digital finance sector. It is worth mentioning that Scholl's previous mobile wallet startup, SadaPay, was sold to Turkey's Papara in 2024, and this successful exit provided valuable experience for his new project.

If Pakistan's business model verification is successful, ZAR plans to expand into the African market in 2026. The African continent also faces challenges of inadequate banking service coverage, while mobile money has achieved significant success in certain areas, creating favorable conditions for the promotion of stablecoins.

The Breakthrough Path of Stablecoins in Emerging Markets

The attempt with ZAR represents a new direction for stablecoin applications: no longer limited to cryptocurrency trading scenarios, but truly delving into everyday economic life. If this model succeeds, it will provide a shortcut for hundreds of millions of unbanked people around the world to access the global financial system.

However, the project also faces numerous challenges, including user education, exchange rate volatility risks, changes in regulatory policies, and competition from the traditional remittance industry. Especially in complex political and economic markets like Pakistan, establishing lasting user trust will be key.

a16z Crypto Investment Landscape

This should be a16z's latest investment in the crypto space. As we all know, the globally renowned venture capital firm Andreessen Horowitz (a16z) has made extensive investments in the cryptocurrency and Web3 sectors, with its crypto portfolio covering various sub-sectors such as infrastructure, DeFi, NFTs, gaming, social, and identity. Below is a highlight of a16z's crypto portfolio, which includes some noteworthy projects.

Public Chain and Infrastructure

• US Listed CEX: One of a16z's most successful early crypto investments, it is a leading cryptocurrency exchange globally.
• Ethereum (ETH): Ethereum is a smart contract platform and the foundation of the Web3 ecosystem. a16z has invested in it and actively supports its development.
• Solana (SOL): A high-performance public chain that attracts numerous developers with its fast transactions and low fees, with a16z being one of its key supporters.
• Polkadot (DOT): A project dedicated to building a multi-chain ecosystem, a16z is an early investor.
• NEAR Protocol: A sharding technology public chain focused on providing a scalable and user-friendly development platform.
• Celestia (TIA): The first modular blockchain network aimed at addressing scalability issues.
• Alchemy: A platform that provides infrastructure and API services for Web3 developers.

DeFi

• MakerDAO (MKR): A pioneer in the DeFi space, issuing the decentralized stablecoin DAI.
• Uniswap: One of the most popular decentralized exchanges (DEX), a16z is an important investor.
• Compound (COMP): A lending protocol that allows users to lend or borrow crypto assets.
• Dapper Labs: Its products include the well-known NFT projects CryptoKitties and NBA Top Shot, which drove the early prosperity of the NFT market.
• Opensea: Currently one of the largest NFT trading platforms in the world.

Web3 Applications and Protocols

• Flow: A high-performance, user-friendly blockchain designed for NFTs, games, and Web3 applications.
• Mythical Games: A blockchain game studio dedicated to creating digital games where players own assets through NFT technology.
• Axie Infinity: A blockchain-based P2E (play-to-earn) game, with a16z as its investor.
• Rarible: A decentralized marketplace that supports the creation and trading of NFTs.
• Substack: A subscription-based content platform, the investment from a16z enables it to explore the integration of Web3 and crypto technology with content creation.

stablecoin and payment

• Circle: The company that issues the USDC stablecoin, with a16z as a significant investor.
• Stripe: A globally renowned online payment service provider, its focus on the stablecoin payment sector has also attracted investment from a16z.

Investment Strategies and Trends

a16z's cryptocurrency investment strategy mainly focuses on the following aspects:

• Infrastructure Development: Projects that support the construction of Web3 underlying protocols, development tools, and scalability solutions.
• Tokenization of Real World Assets (RWA): Investments in projects that tokenize real world assets (such as government bonds, commodities, and stocks) on the blockchain are believed to reshape capital markets.
• The Combination of Artificial Intelligence and Cryptocurrency: Focus on projects that utilize decentralized infrastructure and smart contracts to support artificial intelligence applications, such as AI-driven wallets and autonomous agents.
• Consumer Applications: Optimistic about consumer-grade applications that can attract large-scale user adoption, such as games and social platforms.
• Compliance: Actively promote clarity in industry regulations and invest in projects that meet regulatory requirements to attract more institutional funds and users.

It is important to note that the investment risks in the cryptocurrency market are extremely high, and the market changes rapidly. a16z's investment portfolio is a reference and should not be the sole basis for personal investments.

Conclusion

The innovative attempt of ZAR marks the shift of stablecoin applications from speculative trading tools to inclusive financial infrastructure. By hiding complex blockchain technology behind simple QR code scanning, the company has made digital dollars accessible.

For the general public in emerging markets like Pakistan, this service could mean more convenient payment methods, lower remittance costs, and stronger purchasing power protection. For the entire cryptocurrency industry, the success or failure of ZAR will test whether stablecoins can truly become a bridge connecting traditional finance and the digital economy.

As the 2026 expansion plan in Africa progresses, whether ZAR can replicate its successful model in emerging markets is worth ongoing attention. Regardless, this startup has provided a compelling example for the real-world application of stablecoin.