ZARU is a stablecoin backed by the rand, a digital token worth exactly one rand at all times. It gives institutions a way to move value in rand with the speed, cost and programmability of the internet, while keeping the protections of the regulated banking system. With ZARU now listed on Luno Global, the rand also has its first continuous, always on secondary market on a large regulated exchange. This overview explains what ZARU is, who stands behind it, how its reserves work, and where institutions use it.
What is ZARU?
ZARU is a digital representation of the rand that settles on a blockchain. A traditional rand transfer waits on banking hours, correspondent chains and clearing that can take days. ZARU settles in seconds, at any hour, for a fraction of the cost, while remaining a claim on one real rand held in reserve.
This is no longer a fringe idea. In 2024, stablecoins settled an estimated $27.6 trillion, surpassing the combined volume of the major card networks. ZARU brings that proven model home, denominated in rand.
ZARU at a glance
Asset type: stablecoin backed by the rand (1 ZARU = R1)
Value: fixed 1:1 to the rand
Backing: fully collateralised by rand reserves, in cash and cash equivalents, held onshore
Issuer: BlockTower, an authorised Financial Services Provider (FSP 55172) and Crypto Asset Service Provider
Reserve manager: Sanlam
Custody: Standard Bank, in a segregated account
Reserves: independently attested every month
Availability: 24/7, including weekends and public holidays
On exchange: listed on Luno Global as ZARU/USDT and ZARU/USDC, available in South Africa, Nigeria, Kenya and Uganda
Access: institutional, through direct minting and redemption or secondary liquidity on exchange
Oversight: operates within South Africa's framework regulated by the FSCA, with Balance of Payments reporting
How ZARU works
Every ZARU is backed one to one, so the circulating supply grows or shrinks only as rand enters or leaves the reserve. Institutions reach ZARU two ways: directly, through minting and redemption with the issuer, and on exchange, through the listed pairs. A single flow runs four steps:
Mint: an institution deposits rand and receives an equal amount of ZARU; the rand goes into the onshore reserve.
Move: ZARU transfers on chain between counterparties, or acts as the settlement leg inside a larger flow, finalising in seconds at any hour.
Redeem: the institution returns ZARU and receives rand 1:1; the redeemed ZARU leaves circulation.
Report: Balance of Payments codes and any applicable Travel Rule data are captured on relevant flows.
Why a rand stablecoin, and why now
The rand is one of the most actively traded emerging market currencies in the world, with deep, sustained demand across a wide range of capital market instruments, from spot foreign exchange and derivatives to offshore listed products. Until now, that global rand activity had no regulated venue to settle on chain. The ZARU/USDT and ZARU/USDC pairs on Luno Global are, in effect, rand foreign exchange moving on chain.
The wider market is moving the same way. Supply of stablecoins denominated in currencies other than the US dollar has grown 50 times since 2020, from $44 million to $2.20 billion, according to research from Keyrock and Bitso. Emerging market currencies are leading the shift. Brazilian real volume has compounded at roughly 20% a quarter for two years to $5.3 billion, and the Mexican peso has set successive quarterly trading records. The rand ranks among the most liquid and heavily traded of these currencies, backed by strong bilateral trade flows from a resource rich, industrial and services economy.
The consortium behind ZARU
ZARU works because no single party controls every part of it. Each role sits with a specialist, and the duties are deliberately separated:
BlockTower issues and redeems ZARU and holds the regulatory licence.
Sanlam manages the reserve assets.
Standard Bank holds the reserves onshore in a segregated account.
Currency Hub provides continuous liquidity as the dedicated market maker.
Luno Global lists the ZARU/USDT and ZARU/USDC pairs and provides an accessible secondary venue.
Because the party that issues ZARU is not the one that manages the reserves, holds the cash, or attests the balance, institutions can trust the instrument without having to trust any single participant.
Onshore reserves
The reserve is the foundation of ZARU's credibility, and it rests on three things:
Full backing: every ZARU is matched 1:1 by rand reserves, with no fractional or algorithmic shortcuts.
Onshore custody: reserves sit in South Africa, in rand, in a segregated account at Standard Bank, so institutions keep their rand exposure as rand rather than routing through a foreign currency stablecoin.
Monthly verification: an independent attestor confirms the reserves every month, so the claim that one ZARU equals one rand is checked by someone other than the issuer.
Dedicated liquidity
A listing only becomes a market when someone quotes prices on both sides continuously. Currency Hub, an authorised Financial Services Provider and Crypto Asset Service Provider regulated by the FSCA, acts as ZARU's dedicated market maker and quotes prices on both sides of the listed pairs. That continuous liquidity lets treasuries and trading desks move size in and out of ZARU at attractive spreads, around the clock in secondary markets.
Regulatory standing
ZARU treats compliance as part of the product. It operates inside South Africa's framework regulated by the FSCA, issuance sits with a licensed entity, and Balance of Payments, anti money laundering, know your customer and Travel Rule obligations are handled through authorised channels. The regime is real and active: as of December 2025, the FSCA had approved 300 crypto asset service provider licences out of 512 applications since licensing began in 2023, according to DLA Piper. ZARU works within exchange control rules; it does not work around them.
Institutional use cases
One product, many contexts. The instrument and the trust behind it stay the same; only the counterparty and the problem change.
Trade settlement across borders. Exporters and importers settle rand obligations across African corridors in minutes rather than days, with reporting captured automatically.
Asset manager foreign exchange execution. Managers move between rand and other currencies for offshore allocations using ZARU as the settlement leg, while staying denominated in rand.
Corporate treasury. Groups with subsidiaries across several jurisdictions centralise working capital on chain, cutting idle liquidity and settlement delay.
Tokenised asset settlement. ZARU acts as the cash leg in delivery versus payment settlement of tokenised instruments, settling both legs together and removing counterparty risk.
How institutions access ZARU
Institutions reach ZARU two ways. The first is direct minting and redemption with the issuer, where rand is deposited and ZARU is issued 1:1, and returned the same way. The second is secondary liquidity on exchange: Luno Global lists the ZARU/USDT and ZARU/USDC pairs for customers in South Africa, Nigeria, Kenya and Uganda, with further regions to follow as regulation permits.
Liquidity on Luno Global's exchange and OTC Desk lets treasuries and trading desks move size at attractive spreads, around the clock. It is built for corporate and group treasuries, asset and fund managers, payment service providers and B2B platforms, banks and wealth desks, and institutions with high volume rand flows.
What ZARU is, and what it isn't
ZARU is a digital rand stablecoin, infrastructure that institutions use or embed. It is a complement to the banking system, fully backed 1:1 by onshore reserves under regulatory oversight.
ZARU is not as volatile as traditional cryptocurrencies like Bitcoin. Neither is it a consumer app, a replacement for your bank, algorithmically or fractionally backed, or a way around the South African Reserve Bank, exchange controls or the JSE.
Frequently asked questions
Is ZARU a cryptocurrency like Bitcoin?
No. ZARU is a stablecoin pegged 1:1 to the rand. Its value does not rise or fall; one ZARU is always one rand.
What backs ZARU?
Rand reserves held onshore, managed by Sanlam, held at Standard Bank in a segregated account, and independently attested every month.
Is ZARU regulated?
Yes. ZARU operates within South Africa's framework regulated by the FSCA, with Balance of Payments reporting.
Where can institutions trade ZARU?
ZARU is listed on Luno Global as ZARU/USDT and ZARU/USDC, available to customers in South Africa, Nigeria, Kenya and Uganda, with dedicated liquidity from Currency Hub.
Does ZARU bypass the SARB or exchange controls?
No. It operates within exchange control rules, with reporting captured on relevant flows.
How is ZARU different from USDC or USDT?
ZARU is denominated in rand and backed by onshore rand reserves, so South African institutions get settlement on chain without taking on foreign currency exposure.
