Old Mutual Wealth and Inves Capital have unveiled an initiative aimed at boosting liquidity for the ZARP Stablecoin, a cryptocurrency token linked to the value of the South African Rand.
The companies plan is to provide significant liquidity to the ZARP network and encourage its utilization on decentralized finance (DeFi) protocols. The treasury of South African Rand assets supporting the ZARP Stablecoin is currently under the management of Old Mutual Wealth.
This collaboration is being expanded to include the provision of liquidity funding for the ZARP network.
“In 2022 we announced that Old Mutual Wealth had been appointed to handle the cash reserves backing the ZARP Stablecoin project,” says Simon Dingle, Managing Director for Inves Capital and ZARP Stablecoin.
“We are now extending our relationship to explore new frontiers in decentralised finance and provide deep liquidity to emerging capital markets. Crypto is entering a new phase of growth and ZARP is braced to play a central role in representing Rand value in these exciting new protocols.”
Dingle pointed out that regulatory clarity in South Africa has created fresh business prospects for crypto asset service providers (VASPs). He emphasized that stablecoins play a crucial role in the emerging financial system in the region.
“ZARP gives the Rand superpowers, upgrading it to be compatible with the new world of programmable money and enabling new use cases that redefine markets and improve financial inclusion,” he said.
Farhad Sader, Managing Director of Old Mutual Wealth says:
“In 2022, we partnered with Inves Capital to manage the ZARP treasury because we viewed it as an opportunity to participate in a project that was pushing the boundaries of innovation. It was always our intention to extend the partnership, and that is exactly what we are doing now, because we have seen the potential application of the technology first-hand.”
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FAQs
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What is a stablecoin?
From Wikipedia: Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some “stable” asset or basket of assets. A stablecoin can be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals). For ZARP this means being pegged to the South African Rand, so that the price of 1 ZARP always equals 1 South African Rand.
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Where does the name ‘ZARP’ come from?
‘ZAR’ is the ticker symbol for the South African Rand currency. The ‘ZA’ is often used to describe South Africa, for example in the country’s .co.za internet domain names, and refers to the name Zuid-Afrika. The ‘P’ stands for peg, because ZARP is pegged to the price of the South African Rand.
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How do you guarantee the price of ZARP?
Whenever our Minting Partners buy ZARP from us, we create new tokens to match the amount of ZARP being acquired. These rands are kept safely in our treasury which is managed by our partners at Old Mutual Wealth. When real rands are withdrawn, we burn (destroy) an equal amount of ZARP tokens. Our treasury is verified by independent auditors to guarantee that we actually have the money we claim to and are acting honestly in maintaining our treasury. This way there is always at least 1 South African Rand for every 1 ZARP token, and we will never pay more or less than R1 for every ZARP burned ✨
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Where can I get ZARP?
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What blockchain does ZARP run on?
ZARP is available on the Ethereum and Fantom blockchains, using the ERC20 token standard.
- Ethereum contract address: 0xb755506531786C8aC63B756BaB1ac387bACB0C04
- Fantom contract address: 0x2f085edec7113e54a1747bD9572b213E662C6165
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