ZAR, a Pakistan-based startup, has secured $12.9m from venture capital firm Andreesen Horowitz to finance its ambition to bring stablecoins to Pakistan's unbanked.
Other participants in the funding round included Dragonfly Capital, VanEck Ventures, Coinbase Ventures and Endeavor Catalyst.
Pakistan has a propulation of around 240 million and more than 100 million unbanked adults, making it one of the largest untapped markets for fintechs in the region, especially those focused on financial inclusion.
ZAR's business model relies on distribution deals made with local neighbourhood shops, payment kiosks and remittance agents that will allow consumers to instantly convert cash into stablecoins.
Previous attempts to mobilise the unbanked have focused on the use of smartphones
The move follows the introduction of new rules for digital assets laid out in the Virtual Assets Ordinance 2025 which established a dedicated regulator, the Pakistan Virtual Assets Regulatory Authority, for the growing asset class.