South African companies LUNO, Sanlam, EasyEquities and Lesaka have announced the launch of ZARU, a new stablecoin that is fully backed one-to-one by the South African rand. Introduced on February 3, 2026, ZARU represents a significant advancement in the African tech landscape, facilitating the integration of the South African Rand into the rapidly evolving blockchain space.

ZARU is the outcome of a collaboration between notable firms: Luno, a prominent cryptocurrency exchange; Sanlam, a leading investment company; EasyEquities, a retail investment platform; and Lesaka Technologies, known for its fintech innovations. This partnership emphasizes the collective effort to enhance the digital finance ecosystem in South Africa.

Traditionally, transactions involving the Rand have faced challenges due to the limitations imposed by conventional banking systems, including restrictive hours and high fees. ZARU addresses these issues by utilizing blockchain technology, offering a reliable and fully Rand-backed digital currency that supports instantaneous, round-the-clock transactions. This innovation connects local South African markets with the global digital economy seamlessly.

Every ZARU token is supported by reserves held in South African rand at Standard Bank, Africa’s largest bank. These reserves include cash, bank deposits, and equivalent South African government bonds, and they undergo monthly independent audits by Moore Johannesburg, ensuring transparency and reliability. By maintaining the reserves within a South African bank, ZARU fosters an increased demand for Rand-denominated assets on the global stage. The management of these reserves aligns with an asset liability management agreement established with Sanlam Specialist Asset Manager.

Currently, ZARU is available only to qualified institutional investors through the trading desks at Luno and EasyEquities. Retail investors will not have access to ZARU at this stage, but both platforms plan to expand availability to a wider audience in a phased approach in the near future.