South Africa’s ZAR X Exchange Brings Unit Trust Funds On Blockchain

ZAR X has been in the news for sometime now. As a licensed and regulated stock exchange in South Africa, the company has finally launched its blockchain-based trading platform for unit trust funds.

In fact, ZAR X has been strategically sending out press releases for a while. First, it started with the announcement, then explained how the platform will revolutionize unit trusts, and now the official launch.

Unit Trust Funds Get Automated

With this, ZAR X becomes the first blockchain-based exchange to support unit trusts in South Africa. If you didn’t know, unit trust funds are an investment scheme in which investors pool money and a dedicated fund manager chooses shares or bonds, with the hope of achieving profits and meeting the financial objective.

Traditionally, this method involved a lot of manual ownership. Every step in the process required you to fill an application — from switching funds to withdrawal.

And this is where blockchain shines.

With the introduction of this blockchain-based solution, ZAR X is not only building a decentralized and transparent system but also offering people with a range of unit trusts. From placing an order to making the payment, everything is real-time and settled directly through the fund managers in a secured environment.

To achieve this, ZAR X partnered with Adhara and Computershare. Speaking to CNBC Africa, CEO of ZAR X Etienne Nel believes introducing unit trusts is “basically in our DNA.” The company is planning to add several new unit trust funds soon.

Note: You have to download the ZAR X mobile app (Android / iOS) to buy and sell unit trusts in real-time. It is also only available to Africans.

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