- Trending
- Comments
- Latest
Luno, Sanlam, Easyequities, and Lesaka have launched South Africa’s first institutional-grade stablecoin backed one-to-one by the rand, with reserves held domestically and audited monthly by an independent firm.
The Zaru token, which went live this week for qualified institutional investors, is designed to enable 24/7 settlement for payments and transfers while keeping reserve assets within South Africa’s financial system—a structure the consortium says could boost global demand for rand-denominated assets.
The firms behind Zaru token describe it as a digital currency built to operate at the “speed of the internet,” enabling instant, 24/7 settlement for both retail and institutional users. Unlike traditional bank transfers that are constrained by business hours, cross-border frictions, and legacy infrastructure, the stablecoin is designed to facilitate near-instant payments and transfers on blockchain rails.
“ZARU is designed to modernize payment and financial infrastructure, enabling both retail and institutional users to transact at the speed of the internet while bolstering the local financial system,” — Consortium statement.
By reducing delays and costs associated with domestic and cross-border payments, the partners argue that Zaru token could become a foundational layer for future digital financial services in South Africa, including remittances, trade settlement, and programmable payments.
Central to the credibility of Zaru token is its reserve structure. According to local reports cited by the consortium, every token is fully backed by liquid, rand-denominated assets. These include cash, bank deposits, and South African government bonds, ensuring a 1:1 peg with the local currency.
Reserve management is handled by Sanlam Specialised Asset Management under a formal asset-liability management agreement. To reinforce transparency and trust, the reserves are audited monthly by Moore Johannesburg, providing independent verification of backing and solvency.
The consortium emphasized that keeping reserves invested within South Africa’s financial system could help drive broader demand for rand-denominated assets globally. This structure is intended not only to support price stability but also to align the stablecoin with national economic interests.
Executives from the participating firms have framed Zaru token as both a technological milestone and a potential driver of financial inclusion. Jacques le Roux, CEO of Sanlam Financial Markets, said the project bridges traditional finance and blockchain-based systems.
“We’re connecting traditional financial markets to the world of blockchain to enable cheaper, faster payments,” — Jacques le Roux, CEO, Sanlam Financial Markets.
“This initiative has the potential to significantly contribute to financial inclusion,” he added.
James Lanigan, CEO of Luno, described Zaru token as a turning point for South Africa’s digital economy, highlighting its focus on efficiency and secure backing.
“It is designed to make payments and transfers faster and cheaper while fully supported by secure reserves,” — James Lanigan, CEO, Luno.
Charles Savage, CEO of Easyequities, emphasized accessibility and trust as core principles behind the stablecoin.
“Our mission has always been to make investing easy and accessible. ZARU gives South Africans a trusted, low-cost way to participate in the future of finance while keeping the rand at the center,” — Charles Savage, CEO, Easyequities.
Ali Mazanderani, executive chairman of Lesaka, similarly argued that the stablecoin is well positioned to accelerate payment speeds and reduce costs for rand-based transactions across the economy.
At launch, access to Zaru token will be limited to qualified institutional investors through the trading desks of Luno and Easyequities. The consortium said this phased approach allows for controlled adoption, operational testing, and regulatory alignment before expanding access.
Retail availability is planned for a later stage, with both platforms indicating intentions to extend Zaru token to their broader user bases in South Africa. The timeline for full retail rollout has not yet been disclosed.
Market observers note that the launch of Zaru token places South Africa among a growing list of jurisdictions experimenting with privately issued, fully backed stablecoins tied to local currencies. While the initiative operates within existing financial structures, its success will likely depend on regulatory clarity, user trust, and real-world utility.
For now, the consortium is positioning Zaru token as a complementary layer to the existing financial system—one that leverages blockchain efficiency while anchoring value firmly to the South African rand.
