Financial Services Giant Old Mutual Wealth is appointed to control the reserved notes that back ZARP, the crypto stablecoin pinned to the worth of the South African Rand.
The appointment of Old Mutual will allow ZARP to spout the prestige of one of the country’s oldest and most trusted institutions. ZARP also said the move would enhance a “new dimension of trust” to the stablecoin project through numerous audits and support from the financial giant.
The founders of ZARP, Simon Dingle and Kenny Inngs, clarified in the Mybroadband statement that they designed the token to set the standard for stablecoin auditing in South Africa. While attesting to their audited cash reserves will improve the credibility of the cryptocurrency.
“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,” said Dingle, ZARP’s managing director.
South African stablecoin gaining popularity
ZARP is a fully collateralized stablecoin that has attracted more users and trading volume while building trust by listing a backed transparent stablecoin. It also stimulates deposits within the local industry.
Speaking about the possible impact of Old Mutual Wealth’s association with stablecoins, ZARP’s Managing Director, Simon Dingle said it would add trust to the ZARP project, saying:
“We set out to partner with the absolute best of the best in managing our cash reserves, so naturally, Old Mutual Wealth is a perfect fit,”
ZARP stablecoin’s trading volume is estimated to be $3.9M
According to ZARP, Old Mutual’s management of the treasury will ensure the safety of new tokens to match the amount of ZARP acquired.
“Independent auditors verify our treasury to guarantee that we have the money we claim and act 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,” ZARP said in a statement on its site.
An attestation report published in May reveals that the ZARP stablecoin had tokens worth around $3.9 million since OVEX first listed it as a centralized exchange.
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