Zaru Introduced As Fully Rand-Backed Digital Currency To Enable Faster And More Efficient Payments

Zaru (ZAR Universal) is a digital currency designed to maintain a 1:1 value with the South African rand, combining blockchain technology with fully-backed fiat reserves.

Each token is supported by high-quality rand-denominated assets, including cash, bank deposits, and government bonds, held locally and independently audited monthly by Moore Johannesburg. Standard Bank serves as the custodian for these reserves, ensuring transparency and stability.

The initiative is a collaboration between some of South Africa’s leading financial and fintech institutions: Luno, the cryptocurrency exchange; Sanlam Specialised Asset Management (Pty) Ltd; EasyEquities, the digital investment platform; and Lesaka Technologies, a global fintech group. Together, they developed Zaru to enable faster, cheaper, and more efficient transactions while maintaining strong ties to the regulated financial system.

At launch, Zaru is available exclusively to qualified institutional investors through Luno and EasyEquities trading desks. Plans for a broader retail rollout are expected once infrastructure and regulatory compliance are fully established.

Stablecoins like Zaru allow funds to move 24/7 without reliance on traditional banking hours, potentially transforming cross-border payments, remittances, and domestic transactions. By enabling instant settlement at lower costs, Zaru could provide businesses and individuals with new efficiencies, while attracting global interest in rand-denominated assets.

Rand meets blockchain

The launch comes amid a growing trend of central bank and private stablecoins worldwide, as countries and financial institutions seek to digitise currency while minimising volatility. Unlike central bank digital currencies (CBDCs), which are government-issued, Zaru is market-driven and fully backed by institutional assets, combining the stability of the rand with the flexibility of blockchain technology.

Experts say the move could also strengthen South Africa’s financial markets, as all backing assets remain onshore, supporting liquidity and enabling a seamless bridge between traditional finance and digital assets. However, challenges remain, including broader adoption beyond institutional investors and navigating evolving regulatory frameworks.

With Zaru, South Africa joins a select group of nations advancing into the digital currency frontier, signalling a new era of efficient, secure, and globally-connected finance. Observers say the launch could redefine how the rand is used domestically and internationally, positioning South Africa as a pioneer in Africa’s blockchain-powered economy.

This development is being closely watched by financial institutions, investors, and regulators, as it could serve as a blueprint for future fiat-backed digital currencies on the continent.