Key Takeaways
- The ZARU rand-backed stablecoin has launched in South Africa, pegged one-to-one to the rand.
- Developed by Luno, Sanlam, EasyEquities, and Lesaka, ZARU supports transactions on blockchain infrastructure.
- Each ZARU token is backed by liquid assets, including cash and South African government bonds, with audits ensuring full backing.
- Currently available to institutional investors via Luno and EasyEquities, ZARU aims for future retail access.
- ZARU facilitates faster transfers and connects blockchain transactions with regulated financial institutions.
The ZARU rand-backed stablecoin has been launched in South Africa. The digital token is pegged one-to-one to the South African rand. It operates on blockchain infrastructure and enables continuous transaction settlement. The stablecoin is designed for institutional use at launch.
ZARU was developed through a collaboration involving Luno, Sanlam Specialised Asset Management, EasyEquities, and Lesaka Technologies.
Reserve Structure Behind ZARU
Each ZARU token is supported by high-quality liquid assets denominated in rand. The reserves include cash, bank deposits, and South African government bonds. Sanlam Specialised Asset Management manages the underlying assets under an asset liability framework.
Standard Bank serves as the custodian of the reserves. The backing assets are independently audited every month by Moore Johannesburg. The audits verify that issued tokens remain fully backed on a one-to-one basis.
Institutional Rollout and Access
The ZARU rand-backed stablecoin is currently available to qualified institutional investors. Access is provided through Luno and EasyEquities trading platforms. Retail participation has not yet begun. A phased expansion to a wider market is planned.
The blockchain structure allows transactions outside traditional banking hours. Settlement can take place at any time of day.
Role in Digital Payments
The ZARU rand-backed stablecoin provides a digital representation of the South African rand. It supports faster domestic and cross-border transfers. The structure connects blockchain transactions with regulated financial institutions through audited reserves and bank custody.
The launch introduces a rand-denominated stablecoin backed by local assets within South Africa’s financial system.
Source: https://fintechnews.ae/30395/fintech-africa/south-africa-launches-rand-backed-stablecoin-zaru/
