Old Mutual wealth has been appointed to handle the cash reserves that back ZARP, the cryptocurrency stablecoin that is pegged to the value of the South African rand.
ZARP Stablecoin MD Simon Dingle said that, as with other stablecoins, like USDC, ZARP’s cash reserves are a critical component of building trust with users.
Dingle said the appointment of Old Mutual Wealth will add a “new dimension of trust” to the ZARP project, given that Old Mutual is “one of the oldest and most trusted financial institutions in South Africa”.
“We designed ZARP to be the most trusted cryptocurrency project in South Africa, with cash reserves fully backing the value of ZARP tokens circulating in the market,” Dingle said in a statement on Tuesday.
“We also set the standard for stablecoin auditing in South Africa with full and independent attestation of our cash reserves, with an audit trail from day one, further adding to transparency and trust behind ZARP.”
ZARP is a fully collateralised stablecoin, meaning that for every ZARP token issued on the blockchain, there is at least one rand in its treasury reserves.
Old Mutual Wealth has begun management of ZARP’s treasury at time of writing. The global stablecoin market is currently estimated to be worth about US$155-billion, Dingle said.