ZAR Universal (ZARU), an institutional-grade stablecoin pegged to the South African Rand (ZAR), has launched aiming to modernise payment and financial infrastructure.

ZARU operates on a blockchain, allowing users to transact around the clock and settle payments instantly, while maintaining Rand-backed reserves.

Sanlam Specialised Asset Management manages the assets underlying each ZARU token under an asset liability management agreement, ensuring transparency and stability while keeping funds within the South African financial system.

Moore Johannesburg independently audits the reserves, which consist of high-quality liquid assets denominated in Rand, including cash, bank deposits, and South African government bonds, on a monthly basis.

The launch is a collaboration between Luno, Sanlam, EasyEquities, and Lesaka, combining established financial infrastructure with blockchain technology.

Featured image credit: Edited by Fintech News Middle East, based on image by Tobias Reich via Unsplash