South Africa has launched ZARU (ZAR Universal), its first institutional-grade stablecoin backed one-to-one by the South African Rand. This move marks an important step in bringing the Rand into the global digital economy and improving how payments work across Africa.
ZARU is designed to make payments faster, cheaper, and available 24/7, unlike traditional bank transfers that depend on banking hours and slow clearing systems. With ZARU, money can move at internet speed, even across borders.
The stablecoin was created through a partnership between major financial and fintech companies, including Luno, Sanlam Specialised Asset Management, EasyEquities, and Lesaka Technologies. These are trusted institutions, which adds credibility and confidence to the project.
ZARU is fully backed by high-quality Rand-denominated assets. These include cash, bank deposits, and South African government bonds. This means every ZARU token issued is supported by real assets of equal value. The reserves are checked and audited every month to ensure transparency and trust.
One key feature of ZARU is that its backing assets remain inside the South African financial system.
This helps protect Rand and increases global demand for Rand-based digital assets. It also makes ZARU suitable for businesses, institutions, and large financial players that need stability and clear regulation.
At launch, ZARU is only available to qualified institutional investors through Luno and EasyEquities. However, there are plans to gradually open access to retail users. This means everyday users may soon be able to use ZARU for payments, savings, and digital transactions.
Beyond payments, ZARU acts as a bridge between traditional finance and blockchain technology. It can support cross-border trade, reduce remittance costs, and improve settlement times for businesses operating in Africa and beyond. Overall, ZARU is more than just a stablecoin. It represents South Africa’s effort to modernize its financial system, increase trust in digital currencies, and position the Rand for relevance in a fast-growing digital economy.
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