Old Mutual Wealth and Inves Capital have announced an initiative to promote liquidity for ZARP Stablecoin, a crypto token pegged to the price of the South African rand. The companies will inject substantial liquidity into the ZARP network and promote its use in decentralised finance protocols.
The treasury of rands that back the ZARP Stablecoin is already managed by Old Mutual Wealth and the relationship is now being extended to include liquidity funding.
“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 explained that regulatory clarity in South Africa has enabled new business opportunities for Crypto Asset Service Providers, and that stablecoins are the beating heart of this new financial system.
“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.”
ZARP is a fully collateralised stablecoin, meaning that for every ZARP token issued on the blockchain, there is at least one rand held in its treasury reserves and managed by Old Mutual Wealth. New liquidity provided by this initiative is available at time of writing.
