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Platinum Wealth

ZAR X launches blockchain for unit trusts in South Africa

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Local stock exchange ZAR X, in conjunction with Adhara and Computershare South Africa, has launched the first distributed settlement system for unit trusts in South Africa.


Using the blockchain, it enables the public to purchase and settle unit trusts directly from fund managers in a secure environment.

The ZAR X system reinvents the traditional way of administering unit trusts using digital technologies as its foundation.


Instead of monthly administration fees, investors pay a once-off transaction fee. Furthermore, they can transact in unit trusts either through their ZAR X broker or on any mobile device using the ZAR X Mobi App.


The new blockchain system provides regulators and investors with full transparency and transaction history in real-time.

As the blockchain serves as a ledger of events that are distributed or shared between different parties, it can only be updated by consensus of the participants in the system.


This effectively means the blockchain provides a single version of the truth and eliminates the need for reconciliations.

The Adhara components allow for the unit trusts and cash to be tokenised on the same ledger. This ensures all transactions occur ‘on-chain’, providing real-time Delivery vs Payment (DvP) settlement.


The project will go live in the last quarter of this year and will be available on the ZAR X website and the ZAR X Mobi App.

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I actually thought that if any broker or related platform in SA was going to use blockchain and attempt to tokenize a unit trust that it would be Sygnia - @Magda Wierzycka


That said well done ZAR X, I hope they publish some statistics especially on speed (blockchain is slow) and also it would be interesting to see who the participants are.


I think this is just a normal ethereum token (ERC-20), but it's a step in the right direction, perhaps ZAR X will pave the way by setting up the foundation to enable tokenisation and settlement of traditional assets (or any asset for that matter).


@DCX10 what are you guy's thought on this?

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Dont know where Sygnia are on the the BC/ Crypto thing, they seem to have gone quiet.


Agree kudos to ZAR X. Blockchain was made for Unit Trusts, its a match made in heaven I think   😊


This press release is light on detail about who is going to be disrupted, there are almost always winners and losers 

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