Old Mutual Wealth and Inves Capital have recently announced a joint effort to enhance liquidity for the ZARP Stablecoin, a cryptocurrency linked to the South African rand’s value. This strategic partnership involves injecting substantial liquidity into the ZARP network and promoting its integration within decentralized finance protocols.

Initially entrusted with managing the cash reserves supporting the ZARP Stablecoin project in 2022, Old Mutual Wealth has extended its collaboration with Inves Capital to further explore opportunities in decentralized finance. Simon Dingle, Managing Director for Inves Capital and ZARP Stablecoin, highlighted the significance of this expansion, stating, “We are venturing into new territories within decentralized finance to provide robust liquidity to emerging capital markets. With the evolution of crypto, ZARP is poised to play a pivotal role in representing rand value within these innovative protocols.”

Dingle emphasized that South Africa’s regulatory clarity has paved the way for Crypto Asset Service Providers to explore new business prospects, with stablecoins serving as the cornerstone of this emerging financial ecosystem. He explained, “ZARP empowers the rand, transforming it to align with the realm of programmable money and enabling novel applications that reshape markets and enhance financial inclusivity.”

Farhad Sader, Managing Director of Old Mutual Wealth, shared his perspective, stating, “Our partnership with Inves Capital in 2022 to oversee the ZARP treasury was driven by our desire to engage in a groundbreaking project that pushes the boundaries of innovation. Extending this partnership aligns with our vision, as we have witnessed the technology’s potential applications firsthand.”

ZARP stands out as a fully collateralized stablecoin, ensuring that there is at least one rand held in its treasury reserves and managed by Old Mutual Wealth for every ZARP token issued on the blockchain. The fresh infusion of liquidity resulting from this collaboration is currently accessible as of the time of this announcement.