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Dollar Access for the Unbanked
Fintech startup ZAR has raised $12.9 million in a funding round led by Andreessen Horowitz (a16z), with participation from Dragonfly Capital, VanEck Ventures, Coinbase Ventures, and Endeavor Catalyst. The company’s mission is ambitious yet straightforward: use dollar-backed stablecoins to bring financial access and stability to millions of unbanked adults in Pakistan and, eventually, other emerging economies.
The round, reported by Bloomberg, underscores how major investors view digital currencies not merely as speculative tools but as financial infrastructure for inclusion. Pakistan, with a population of roughly 240 million and over 100 million unbanked adults, represents one of the largest untapped markets for fintech innovation in Asia.
From Crypto Buzz to Real-World Access
Unlike typical crypto ventures, ZAR’s model depends on local distribution, not just digital adoption. The company is partnering with thousands of neighborhood shops, remittance agents, and payment kiosks to allow users to convert cash into stablecoins instantly. Through this hybrid system, consumers gain access to dollar-backed digital money using familiar physical channels — a crucial bridge in a country where cash remains dominant.
Once users exchange cash for digital tokens, they can store and spend funds via ZAR’s mobile wallet, which connects directly to a Visa card. This integration allows stablecoin balances to be used globally for payments and transfers, providing both dollar stability and cross-border usability.
The approach marks a shift from previous attempts to “bank the unbanked” through smartphone apps alone. Instead, ZAR’s reliance on human networks — shopkeepers and small agents already trusted by local communities — could help overcome cultural and technological barriers that have slowed digital adoption in rural and lower-income regions.
Backing a Regulated Path Forward
The fundraising comes as Pakistan introduces new rules for digital assets under the Virtual Assets Ordinance 2025. The law established the Pakistan Virtual Asset Regulatory Authority (PVARA) to oversee crypto-related activities, enforce transparency, and monitor potential systemic risks.
For startups like ZAR, this regulatory clarity offers a path that didn’t exist before. By operating under a consistent framework, companies can now design products that meet both consumer protection and compliance standards. That makes ZAR’s timing strategic: it enters the market just as regulators signal openness to digital assets with clearer guardrails.
This alignment between policy and innovation is one reason institutional investors like a16z are taking notice. The firm’s backing signals confidence in the idea that regulated stablecoin platforms can extend the reach of formal finance to populations long excluded from it.
Building Infrastructure for the “Cash-to-Crypto” Economy
ZAR’s focus on offline exchange points is central to its vision. Many of Pakistan’s unbanked adults rely on cash transactions for daily life — paying bills, sending remittances, or saving for emergencies. ZAR’s system effectively turns these small physical locations into entry points to the digital economy, letting users convert between fiat and stablecoins without needing a traditional bank account.
The startup’s broader goal is to build liquidity pathways that connect local cash markets with global dollar-backed assets. In doing so, it provides a financial cushion against inflation and currency instability — challenges that have eroded trust in local money.
By leveraging stablecoins, users gain exposure to digitally transferable dollars, stored and moved through blockchain infrastructure but accessed through everyday channels. For many in emerging economies, this could serve as a digital alternative to dollar cash, reducing reliance on costly remittance networks and volatile exchange markets.
A Vote of Confidence in Emerging Market Fintech
The $12.9 million raise is more than a startup milestone — it’s a reflection of shifting investment priorities in fintech. As regulatory clarity improves, emerging market projects that connect blockchain innovation with tangible economic needs are drawing interest from major venture firms.
a16z’s leadership of the round indicates a belief that financial inclusion through stablecoins can scale beyond early experiments. The involvement of investors like Dragonfly and VanEck, both with deep roots in crypto and traditional finance, reinforces that sentiment.
Analysts see ZAR’s local-agent strategy as a test case for whether stablecoin adoption can thrive outside high-income economies. If successful, the model could be replicated in other regions facing similar challenges — limited banking penetration, volatile currencies, and widespread mobile connectivity.
Beyond Pakistan: Expanding a Local Model Globally
ZAR’s founders plan to use the funds to expand the company’s workforce, enhance technical infrastructure, and pilot its model in other emerging markets. Their focus remains on consumers who lack access to stable currency or efficient financial services.
The company’s long-term aim is to bridge global dollar liquidity with local economies, offering the benefits of digital assets without the complexity or risk often associated with crypto markets. By working through existing social and commercial structures, ZAR blends blockchain efficiency with the familiarity of community finance.
The initiative stands at the intersection of fintech innovation and social impact — connecting advanced financial infrastructure to those most often left behind by it. As the debate around stablecoins continues in global policy circles, ZAR’s experiment offers a simple but powerful proposition: sometimes, inclusion begins not with new technology, but with the people who already run the neighborhood kiosk.
