One of South Africa’s largest financial services groups, Old Mutual, has reportedly been appointed as the cash reserve manager for the ZARP stablecoin project. The founders of the stablecoin hope the appointment of one of the oldest financial services companies in the country will help build trust in the digital currency.
Improving Stablecoin Credibility
South African financial services giant Old Mutual has reportedly been appointed as the manager of the liquidity reserves of the stablecoin backed by the local currency – the zarp. By naming Old Mutual, one of South Africa’s oldest wealth management companies, stablecoin issuers are hoping to boost confidence in the digital currency project, according to a report.
According to a report by Mybroadband, the stablecoin that Simon Dingle and Kenny Inngs founded in 2021 is the only bank-approved and audited stablecoin in South Africa. The arrival of Old Mutual should boost the credibility of the cryptocurrency, the report adds.
Noting the likely impact of Old Mutual Wealth’s association with the stablecoin, Dingle, the Managing Director (MD) of ZARP, said:
We decided to partner with the best of the best in terms of managing our cash reserves, so naturally Old Mutual Wealth is the ideal solution.
Former mutual interested in technology supporting digital currencies
For his part, Farhad Sader, managing director of Old Mutual Wealth, suggested that his company’s partnership with the stablecoin project ensures that the financial services giant is not left behind.
“It pushes the boundaries of innovation, historically dominated by traditional companies. This space will evolve and our partnership will allow us to be part of the journey,” explained Sader.
The CEO added that while many of the decentralization concepts aren’t 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 stablecoin zarp is regularly audited. According to the report, the audit and issuance of an attestation report has been underway “since day one.” As shown in an attestation report published on May 16, the zarp stablecoin had tokens in circulation worth around $3.9 million.
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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
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