A consortium of South African financial and fintech firms has introduced ZAR Universal (ZARU), an institutional-grade stable coin pegged to the South African Rand.
According to a statement, ZARU aims to modernise payments and financial infrastructure, allowing retail and institutional users to transact at internet speed, while strengthening the local financial system.
The stablecoin is a collaboration between Luno, Sanlam Specialised Asset Management, EasyEquities and Lesaka. The consortium says the move combines trusted financial infrastructure with blockchain innovation.
Historically, payments, cross-border trade and remittances in Rand have been slowed by banking hours and fees. ZARU addresses these challenges by operating on a blockchain, offering a trusted, fully Rand-backed digital currency, says the statement.
While ZARU is pegged one-to-one to the South African Rand, it differs from using physical or digital Rand held in traditional bank accounts. Unlike the conventional Rand, which relies on banks and clearing systems that operate during set hours, ZARU runs on a blockchain, enabling instant, 24/7 settlement of transactions. This means payments, remittances and cross-border trade can occur at any time, without the delays or fees associated with traditional banking systems.
Every ZARU token is backed by Rand-denominated assets, including cash, deposits and government bonds. These reserves are independently audited monthly, by Moore Johannesburg, and are managed by Sanlam Specialised Asset Management under an asset liability management agreement – providing transparency and stability that assures users the digital coin retains its full value, note the companies.
Jacques Le Roux, CEO of Sanlam Financial Markets, comments: “We are excited to provide asset liability management services through Sanlam Specialised Asset Management to enable this initiative, given its potential to significantly contribute to financial inclusion. We're connecting traditional financial markets to the world of blockchain to enable cheaper, faster payments.”
James Lanigan, CEO of Luno, adds: "We are delighted to collaborate with trusted institutions to launch a Rand-backed stablecoin with meaningful real-world applications. ZARU is a crucial milestone for South Africa’s digital economy. It’s designed to make everyday payments and money transfers faster and cheaper, while fully supported by secure reserves that help strengthen the local financial system.”
ZARU also offers a bridge between the South African financial system and the global digital economy, say the companies.
While the underlying Rand assets remain in SA, the digital coins can be traded internationally, allowing foreign investors and businesses to interact with Rand-denominated value without needing to hold a local bank account. This creates a mechanism to increase global demand for the Rand, while making payments faster, cheaper and more efficient, notes Luno.
Charles Savage, CEO of EasyEquities, adds: “Our mission has always been to make investing easy and accessible. We’re providing South Africans with a fast, trusted and low-cost way to seamlessly participate in the future of finance while keeping the Rand at the centre of it.”
Ali Mazanderani, executive chairman of Lesaka, comments: “We are delighted to support the evolution of South Africa’s payments infrastructure through this partnership. We believe ZARU is exceptionally well-positioned to accelerate the speed and reduce the cost of Rand payments, benefitting consumers, businesses and society as a whole.”
ZARU will be available initially to qualified institutional investors via Luno and EasyEquities trading desks. The platforms plan a phased rollout to retail users in the near future.
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