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.
Stablecoin’s Credibility Increased
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. A report claims that Old Mutual, one the most established wealth management firms in South Africa has been appointed as the manager of cash reserves of the local currency-backed stablecoin. The move is intended to increase confidence in the cryptocurrency project.
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:
Old Mutual Wealth was chosen because it is the perfect partner for managing cash reserve management.
Old Mutual is 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.
According to the MD, although many of the ideas around decentralization have been around for a while, his company remains very intrigued by the technology behind them.
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.
To receive a weekly update about African news, sign up here
Your thoughts? Comment below and let us know how you feel.
Images from Flickr: Shutterstock, Pixabay, Wiki Commons, By Henk Viljoen – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=70260151
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.