A partnership between four South African financial institutions has led to the launch of an “institutional-grade” stablecoin pegged to the rand.
Dubbed ZAR Universal, or ZARU, the stablecoin will made available to both retail consumers and institutional investors through the alliance between cryptocurrency platform Luno, low-cost trading platform EasyEquities, fintech Lesaka Technologies and Sanlam Specialist Asset Management.
Stablecoins offer a practical bridge between traditional finance and blockchain-based systems by combining the stability of fiat currency with the speed and programmability of digital assets. Because they are pegged to currencies such as the rand or the US dollar, stablecoins avoid the price volatility associated with cryptocurrencies like bitcoin, making them suitable for everyday payments, savings, remittances and settlement.
They enable near-instant, low-cost transfers at any time of day, across borders and without reliance on legacy banking hours or correspondent banking networks. For emerging markets in particular, stablecoins can improve financial inclusion by lowering transaction costs, expanding access to digital financial services and allowing money to move efficiently within regulated frameworks, while still benefiting from transparency and traceability on public blockchains.
“ZARU is designed to modernise payment and financial infrastructure, enabling both retail and institutional users to transact at the speed of the internet while bolstering the local financial system,” the four stablecoin backers said in a joint statement on Tuesday.
“Historically, payments, cross-border trade and remittances involving the rand have been slowed by traditional banking hours and fees. ZARU solves this by operating on a blockchain, providing a trusted, fully rand-backed digital currency that enables instant, 24/7 settlement and connects South African markets directly to the global digital economy.”
Phased launch
The companies said every ZARU digital coin is fully backed by high-quality liquid assets denominated in rand, including cash, bank deposits and government bonds. The assets are independently audited on a monthly basis by chartered accounting firm Moore Johannesburg to ensure transparency and stability.
Keeping the underlying rand-denominated assets in the South African financial system, ZARU drives demand for rand-denominated assets globally, said the statement. The assets are managed by Sanlam Specialised Asset Management in accordance with an asset liability management agreement.
Read: Rand stablecoin ZARP launched with focus on decentralised finance
ZARU will be available to qualified institutional investors from Tuesday via the Luno and EasyEquities trading desks. Retail investors will have to wait for a phased roll-out on both platforms, the details of which will be make on the ZARU website.
“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,” said Luno CEO James Lanigan in the statement.
South Africa has seen a handful of rand-denominated stablecoins emerge in recent years as the local crypto market matures and payment innovators look for ways to bring blockchain-based money closer to everyday use.
One of the earliest and most established is ZARP, a fully collateralised stablecoin pegged 1:1 to the South African rand, with its treasury managed by Old Mutual Wealth and designed to provide volatility-free digital cash for traders and DeFi applications.
More recently, ZAR Supercoin was launched by Super Money SA, a subsidiary of New York–listed Super Group (the business behind Betway). ZAR Supercoin is also backed 1:1 with actual rands held in segregated accounts at Absa and is licensed by the Financial Sector Conduct Authority, making it a regulated option for users to hold, send and redeem digital rands on blockchain platforms such as Luno and potentially other exchanges.
Read: An inflection point for crypto in South Africa
Together, these offerings reflect growing experimentation with fiat-pegged digital currencies in South Africa, potentially lowering costs and speeding up transactions compared with traditional payment rails — though broader regulatory frameworks are still evolving. – © 2026 NewsCentral Media
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