Old Mutual Wealth appointed to manage cash reserves of rand-backed stablecoin ZARP
ZARP appointed South African financial services group Old Mutual Wealth to manage the cash reserves of its stablecoin, which is pegged to the price of the South African rand(ZAR), in hopes of enhancing trust.
ZARP is the only audited and bank-approved stablecoin in South Africa.
Connecting RAND and ZARP
Rand reserves fully back ZARP tokens. Each ZARP token holds one rand in the project’s treasury reserves.
According to an attestation report published on May 16, more than $3.9 million worth of ZARP tokens is in circulation. It is important for stablecoins to be fully collateralized by a conventional fiat currency to ensure they cover each stablecoin issued
ZARPs’ focus on decentralized finance
ZARP tokens offer cryptocurrency users access to rand value on the blockchain and the ability to spend the rand currency on DeFi protocols.
DeFi protocols are smart contracts that support online marketplaces where users can exchange products and services globally and peer-to-peer without needing an intermediary. They also serve as a place for users to earn interest, borrow funds and invest with stablecoins.
The new ZARP and Old Mutual partnership
The founders of ZARP, Simon Dingle and Kenny Inngs, explained that they designed the token to set the standard for stablecoin auditing in South Africa and possess attestation of their audited cash reserves.
Therefore, the partnership with Old Mutual will allow ZARP to tap the reputation of one of the country’s oldest and most trusted institutions. Zarp also said the partnership will add a “new dimension of trust” to the stablecoin project through continuous auditing and support from the financial giant.
Cynthia is an avid writer who is fascinated by the potential of blockchain tech. She also resonates with Web3 values, especially creative expression and individual autonomy. Since discovering crypto in 2019, she has dedicated her work towards reporting on developments in the blockchain and crypto space.Source