One of South Africa’s largest financial services groups, Old Mutual, has reportedly been appointed manager of the cash reserves of the ZARP stablecoin project. Founders of the stablecoin hope the appointment of one of the country’s oldest financial services companies will help boost confidence in the digital currency.
Improving Credibility of the Stablecoin
South African financial services giant Old Mutual has reportedly been appointed the manager of the cash reserves of the local currency backed by stalcoin – the zarp. By appointing Old Mutual, one of the oldest wealth management companies in South Africa, issuers of the stablecoin hope to improve confidence in the digital currency project, a report said.
According to Mybroadband a report, the stablecoin that Simon Dingle and Kenny Ings founded in 2021, was the only banking currency approved and audited by South Africa. The entry of Old Mutual is expected to strengthen the cryptocurrency’s credibility, the report added.
Commenting on the likely impact of Old Mutual Wealth’s association with the stable, Dingle, ZARP’s managing director (MD), said:
We’ve started partnering with the best of the best when it comes to 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 that the financial services giant is not left behind.
“It’s pushing the boundaries of innovation, historically dominated by traditional businesses. This space will evolve, and our partnership will enable us to be 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 reviewed. According to the report, the audit and the publication of a witness report have been ongoing “from day one.” As shown by a certification report published on May 16, the zarp stablecoin had tokens in circulation with a value of about $3.9 million.
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Image Credits: Shutterstock, Pixabay, WikiCommons, By Henk Viljoen – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=70260151
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