ZAR Revolutionizes Financial Access in Pakistan with Stablecoin Integration

ZAR, an innovative fintech startup, is transforming financial inclusion in Pakistan by utilizing the country’s extensive network of convenience stores and mobile phone kiosks to provide dollar-based stablecoins. This groundbreaking initiative aims to close the financial accessibility gap for millions of unbanked individuals in a nation where traditional banking services remain out of reach for many.

In a significant milestone for the company, ZAR successfully raised $12.9 million in a funding round led by Andreessen Horowitz (a16z), as reported by Cointelegraph on October 28. Other prominent investors participating in the round included Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst.

Founded just a year ago, ZAR is on a mission to make dollar-backed stablecoins broadly accessible in Pakistan and other underserved markets. The importance of this initiative is underscored by the World Bank’s data, which reveals that over 100 million adults in Pakistan—out of a total population of 240 million—lack access to a formal bank account.

Transforming Digital Finance with Existing Local Networks

While many digital asset companies establish distribution channels through apps or major exchanges, ZAR adopts a different model that prioritizes accessibility. The company collaborates with existing offline networks such as local convenience stores, mobile recharge stations, and remittance centers to distribute stablecoins. These familiar touchpoints, already used by millions for phone top-ups and money transfers, serve as entry points into digital finance.

This unique strategy eliminates the need for consumers to navigate the complexities of blockchain technology. By leveraging Pakistan’s established financial habits, ZAR aims to democratize stablecoin usage, allowing individuals to seamlessly integrate digital dollars into their everyday lives.

A Simplified Cash-to-Stablecoin Solution

ZAR’s system is designed with simplicity in mind. Users can visit one of the startup’s partner stores, scan a QR code, and instantly convert cash into stablecoins. These stablecoins are then stored in mobile wallets and connected to Visa cards, enabling effortless transactions both locally and globally.

Since its launch earlier this year, ZAR has seen significant growth in Pakistan, particularly in major urban centers. Co-founders Sebastian Scholl and Brandon Timinsky bring extensive experience to the venture. The duo previously founded SadaPay, a mobile wallet startup that was acquired by Turkey’s Papara in 2024.

To date, ZAR has raised a total of $20 million in funding. Following the success of its pilot program in Pakistan, the company has ambitious plans to extend its operations to African markets by 2026, further driving financial inclusion in underserved regions.

Navigating Pakistan’s Emerging Regulatory Framework

ZAR’s rapid growth coincides with significant regulatory developments in Pakistan. The government has made strides toward creating a robust framework for digital assets, spearheaded by the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) earlier this year. PVARA has been tasked with overseeing the digital asset industry and ensuring compliance with emerging regulations.

Adding to this momentum, the Pakistani government introduced licensing requirements in September, allowing global virtual asset service providers (VASPs) and digital asset exchanges to obtain federal business licenses, signaling an ongoing commitment to fostering a secure and regulated digital asset ecosystem.

Pakistan Emerges as a Leader in Digital Asset Adoption

Pakistan continues to rank among the world’s top adopters of digital assets, driven by a population eager for accessible and innovative financial solutions. By tapping into this demand, ZAR is not only addressing the financial exclusion crisis but also setting the stage for broader adoption of dollar-backed digital currencies in emerging markets.

ZAR’s pioneering approach could serve as a blueprint for other developing nations aiming to merge financial technology with local infrastructure. As the global fintech landscape evolves, ZAR exemplifies how innovation can bridge the gap between unbanked populations and the digital economy, aligning with regulatory advancements to foster a sustainable future for financial inclusion.