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.