Andreessen Horowitz Backs Pakistan’s Zar Stablecoin Project with $12.9M Investment
Andreessen Horowitz has taken the lead in a $12.9 million funding round for Zar, a Pakistani fintech startup aiming to revolutionize cash-to-stablecoin conversions in emerging markets. The initiative targets regions with limited banking infrastructure, leveraging local agents to bridge the gap between physical cash and digital assets.
Stablecoins are gaining unprecedented traction, with annual transactions hitting $46 trillion—triple Visa's processing volume, according to a16z's 2025 report. Zar's model capitalizes on this trend by offering unbanked populations seamless access to blockchain-based financial services through neighborhood stores.
While the project promises to enhance financial inclusion, it faces the dual challenges of regulatory scrutiny and infrastructure limitations in target markets. The investment signals growing institutional confidence in stablecoin utility beyond speculative trading.
