One of South Africa’s largest financial services groups, Old Mutual, has reportedly been appointed manager of the ZARP stablecoin project’s cash reserves. Founders of the stablecoin are hopeful that the appointment of one of the country’s oldest financial services companies will help bolster confidence in the digital currency.
Enhancing Credibility of the Stablecoin
The South African financial services giant Old Mutual has reportedly been designated the manager of the cash reserves of the local currency-backed stablecoin — the zarp. By appointing Old Mutual, one of the oldest wealth management companies in South Africa, issuers of the stablecoin hope to enhance confidence in the digital currency project, a report has said.
According to a Mybroadband report, the stablecoin that Simon Dingle and Kenny Inngs founded in 2021 has been South Africa’s only bank-approved and audited stablecoin. Old Mutual’s coming on board is expected to enhance the credibility of the cryptocurrency, the report added.
Remarking on the likely impact of Old Mutual Wealth’s association with the stablecoin, Dingle, the managing director (MD) of ZARP, said:
We set out to partner with the absolute best of the best in terms of managing our cash reserves, so naturally, Old Mutual Wealth is a perfect fit.
Old Mutual Interested in Technology Backing Digital Currencies
For his part, Farhad Sader, the MD at Old Mutual Wealth, suggested that his company’s partnership with the stablecoin project ensures the financial services giant is not left behind.
“It pushes the boundaries of innovation, historically dominated by traditional businesses. This space will evolve, and our partnership will enable us to be a part of the journey,” Sader explained.
The MD added that while the many concepts of decentralization are not exactly new, his company is very interested in the underlying technology.
In addition to its designation as South Africa’s “most trusted cryptocurrency project,” the zarp stablecoin is regularly audited. According to the report, the auditing and the release of an attestation report have been ongoing “from day one.” As shown by an attestation report published on May 16, the zarp stablecoin had tokens in circulation worth around $3.9 million.
Register your email here to get a weekly update on African news sent to your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, By Henk Viljoen - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=70260151
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.