Pakistan fintech startup ZAR raises $13M to test stablecoins

Pakistan’s fintech startup ZAR has raised $12.9 million in fresh funding to pilot dollar-backed stablecoins, a move seen as a major boost for Pakistan’s growing crypto market.

A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a more stable asset, such as a fiat currency like the US dollar, a commodity like gold, or a basket of assets. Unlike volatile cryptocurrencies like Bitcoin, stablecoins aim to reduce price fluctuations to be more suitable for transactions and as a store of value.

According to Bloomberg, the round was led by Andreessen Horowitz (a16z) and joined by Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst.

The latest investment brings ZAR’s total funding to around $20m since its launch, according to the report.

The company aims to test stablecoins in Pakistan, which the World Bank estimates has the third-largest unbanked population in the world.

Unlike other companies that aim to popularize stablecoins through large retail or financial platforms, ZAR hopes to enlist the thousands of mobile phone kiosks, convenience stores, and money agents that underpin daily life in Pakistan.

According to Crypto Times, the model is aimed at people who mostly rely on cash and do not use formal banking. Pakistan has one of the world’s largest unbanked populations, and many residents already depend on small shops for everyday financial transactions. ZAR is positioning these shops as a low-friction entry point to digital payments.

The rollout also comes at a moment when Pakistan is putting clearer rules around crypto use. Under the new Virtual Assets Ordinance, the government has created the Pakistan Virtual Assets Regulatory Authority to license and monitor crypto businesses.