Old Mutual Wealth appointed to manage cash reserves of rand-backed stablecoin ZARP
Zaap appointed South African financial services group Old Mutual Wealth will manage a cash reserve of stablecoins pegged to the price of the South African Rand (ZAR) in hopes of boosting confidence.
ZARP is the only audited and bank-approved stablecoin in South Africa.
Connection of RAND and ZARP
Rand fully secures ZARP tokens. Each ZARP token holds 1 rand in the project’s financial reserve.
According to a proof report published on May 16, there are ZARP tokens worth more than $3.9 million in circulation.To ensure coverage for each stablecoin issued, it is critical that the stablecoin is fully collateralized by traditional fiat currency.
ZARPs Focus on Decentralized Finance
The ZARP token provides cryptocurrency users with access to Rand value on the blockchain and the ability to use Rand currency in DeFi protocols.
DeFi protocols are smart contracts that support online marketplaces where users can exchange products and services globally, peer-to-peer, without the need for intermediaries. It also serves as a place for users to earn interest, borrow funds, and invest in stablecoins.
New ZARP and Old Mutual Partnership
ZARP founders Simon Dingle and Kenny Ings explained that they set the standard for stablecoin audits in South Africa and designed the token to obtain an audited proof of cash reserves.
The partnership with Old Mutual therefore allows ZARP to capitalize on the reputation of one of the oldest and most trusted institutions in the country. Zaap also said the partnership will add a “new dimension of trust” to stablecoin projects through ongoing audits and support from financial giants.
