Andreessen Horowitz Leads Funding for Zar
In a significant move to support financial inclusion, Andreessen Horowitz (a16z) has taken the lead in a fresh funding initiative for Zar, a startup aiming to integrate stablecoins into everyday transactions in places like Pakistan, which is known for its substantial unbanked population. A report from Bloomberg reveals that this startup not only targets Pakistan but also aims to replicate its strategy in other emerging markets where cash transactions are predominant.
Funding and Development
Zar recently secured $12.9 million in a funding round that included prominent venture capitalists such as Dragonfly Capital, VanEck Ventures, and Coinbase Ventures, alongside support from the Endeavor Catalyst. Founded in 2024 by Brandon Timinsky and Sebastian Scholl, Zar develops fintech solutions that facilitate the conversion of cash into stablecoins through local retail channels, particularly neighborhood stores and mobile kiosks.
Innovative Cash-to-Stablecoin Exchange
The startup’s innovative approach allows users to engage in cash-to-stablecoin exchanges directly at accessible points within their communities. By simply scanning a QR code at participating stores, customers can download the Zar platform and convert their cash into stablecoins with ease. This model specifically aims to empower individuals in countries such as Pakistan, Indonesia, Nigeria, and Argentina—where economies rely heavily on cash and currency instability is common.
Previous Investments and User Engagement
Previously, Zar received an investment boost from a16z in April 2025, during a funding round that raised $7 million, attracting participation from firms like VanEck Ventures and notable figures from the crypto space, including co-founders of Solana (SOL). At that time, Zar was already witnessing impressive user engagement, with around 100,000 users set to sign up and interest from 7,000 local stores willing to partner with the startup.
Market Trends and Growth
According to a16z’s State of Crypto 2025 report, the last year has seen transactions using stablecoins soar to $46 trillion, nearly tripling the annual volume processed by Visa.
Notably, September 2025 marked a peak in stablecoin transactions, accumulating close to $1.25 trillion, as the total market value surged to $308.25 billion within just a week.
Market Control and User Growth
Despite this growth, the majority of the stablecoin market remains under the control of U.S.-backed tokens, notably USDT (Tether), which claims around 60% market share. Furthermore, analysts from a16z point out that the stablecoin market is increasingly dissociated from speculative trading trends, confirming their practical application in real-world economic scenarios. The number of active crypto users has also risen by approximately 10 million over the past year, bringing the total to between 40 million and 70 million, largely due to vast improvements in blockchain technology that now boasts transaction capabilities exceeding 3,400 per second—over a hundredfold increase since five years ago.
