eZAR Opens Rand Stablecoin to Public
The rand-backed stablecoin, designed to hold a value of R1, has opened its network to the public and new partners.
Updated on Nov. 2, 2026 in Investing
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eZAR, a rand-backed stablecoin designed to maintain a value of R1, has opened its network to the public and new partners after almost a year of pilot operations. As at 30 October, R303 million worth of eZAR tokens were held in circulation.
Why it matters
The launch brings a rand-denominated digital asset into wider use in South Africa, with reserves invested in a money market strategy and returns distributed daily to partners. The product is not legal tender, a bank deposit or a guaranteed banking product, and redemption at R1 is subject to available liquidity.
As at 30 October, R303 million in eZAR tokens were held in circulation, against a target value of R1 per token backed by reserves invested through a Ninety One money market strategy with a 25-year track record. The source does not disclose how redemptions would be met if demand spiked, beyond noting that R1 redemption depends on available liquidity.
The players
AVBOB Financial Services
AVBOB Financial Services is a South African financial services provider that serves as founding partner, lead institution and liquidity partner for eZAR.
Ninety One
Ninety One is an investment management firm that manages the money market strategy in which eZAR's reserves are invested.
The details
eZAR is a crypto asset issued by the eZAR En Commandite Partnership, with AVBOB Financial Services as founding partner, lead institution and liquidity partner. Transfers between wallets are free according to the company, and institutions can incorporate the digital currency into their own branded wallets, with each partner setting the distribution terms for its customers. The technology draws on work undertaken through the South African Reserve Bank's Project Khokha 2.
Timeline
After almost a year of pilot operations, the network has opened to the public and new partners (2 November 2026).
As at 30 October, R303 million in eZAR tokens were held in circulation.
Market Dynamics
eZAR's technology builds on the South African Reserve Bank's Project Khokha 2, extending that central-bank-linked research into a rand-backed stablecoin offered to the public. Its reserves sit in a money market strategy rather than in cash, so the rand's stability depends on that fund's liquidity as well as the peg itself.
Holders of eZAR do not own units in the Ninety One Money Market Fund and have no direct claim on it, so the R1 redemption value is not guaranteed. Anyone considering the token should weigh that liquidity dependence against the free transfers the company advertises.
The takeaway
eZAR is not legal tender, a bank deposit or a guaranteed banking product, so its R1 value rests on reserves and available liquidity rather than a deposit guarantee. Readers should check the terms set by each partner before relying on it.
Further reading
Explore more on investing in South Africa to see how digital rand assets fit into the broader market.
Source note: This article includes information reported by ITWeb.
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