Old Mutual is among the largest financial institutions in South Africa. The firm now has the privilege of managing ZARP, South Africa’s new stablecoin. The founders of the stablecoin are banking hopes on Old Mutual to boost the project for cash revenue. ZARP is a stablecoin pegged to ZAR, South Africa’s national currency. It is simply a tokenized version of the South African Rand (ZAR). According to ZARP’s Official Twitter page:
“ZARP is partnering with Old Mutual Wealth to manage our treasury. The oldest trust company in SA now handles cash reserves backing ZARP.”
Being the only audited and bank-approved stablecoin in South Africa, the founders are looking for an organization that will improve their coin and boosts investors’ confidence; the firm is Old Mutual. The idea is to promote digital currency after various fraudulent activities have tarnished it.
According to a Twitter user by the name @coincatch1,
“The stablecoin that Simon Dingle and Kenny Inngs founded in 2021 is reportedly South Africa’s only bank-approved and audited stablecoin.”
Old Mutual Roles in Managing ZARP
It enhances the credibility of the stablecoin. Old Mutual is a financial giant in South Africa, and its tasks include managing cash reserves. The wealth management company has a good reputation in financial and wealth management. Many people want to be associated with the bank regarding financial management. This is a reason why ZARP founders seek partnerships with the organization. The idea is to enhance confidence in the digital currency asset. Even Dingle, the managing director of ZARP, affirms this partnership.
Old Mutual Interested in Technology Backing Digital Currencies
The managing director at Old Mutual Wealth confirms that the company’s partnership with ZARP ensures the coin’s credibility in financial transactions. It also helps to create room for innovative ideas that traditional businesses have dominated. The managing director also mentions different concepts of decentralization that are important in the underlying technology.
ZARP stablecoin has a direct linkage to economic activities that require constant auditing. Like any other financial institution, Old Mutual conducts yearly financial audits to evaluate the strengths and weaknesses of the organization. This helps to create a report that is presented to stakeholders, notifying them of the progress of their investment. Recent information from 16th May reported that the amount of ZARP tokens in circulation is worth $ 3.9 million.
Connecting ZARP and South African RAND (ZAR)
A stablecoin is the cryptocurrency representation of a real-world coin. Therefore, ZARP is a digital representation of ZAR. Any changes in the price of ZAR in real life affect the price of ZARP. ZARP is entirely dependent on ZAR. Stablecoins help to reduce the volatility of cryptocurrency markets. It is also a neutral medium of transaction for buying different crypto coins. Its low volatility means users can trade using the coin without fear of liquidation.
ZARP is the South African Rand stablecoin. Pegged to local currency, Fully backed by a verified treasury of ZAR Audited, reliable, and simple to use. Ask your favorite exchange to list ZARP today!”
In summary, cryptocurrency is a sensible investment linked to monetary value. A good cryptocurrency investment requires proper structures and a financial body to function. Stablecoin has taken a step to partner with Old Mutual, which has created trust in more people. This will increase more investors in stablecoin because a proper and trusted system is in place. The auditing reports are likely to ensure there are no fraudulent activities in the investment, plus it is protected under the insurance act.