ZARPY is a new yield-bearing digital token introduced by Inves Capital, the issuer of the ZARP Stablecoin. Designed for approved institutional partners, ZARPY enables yield generation on ZARP balances for precisely the period they remain staked, whether for months, days, or minutes.
The product benchmarks yield against the Old Mutual Money Market Fund and combines money market-based returns with blockchain functionality. According to Inves Capital, yield accrues continuously, allowing institutions to earn returns on liquidity without minimum holding periods or fixed-term commitments.
The Role of ZARPY in Institutional Liquidity Management
Traditional money market funds have long been used by South African institutions seeking liquidity, capital preservation, and yield. However, these products generally operate around business-day cut-offs and settlement cycles. Some digital alternatives also calculate returns using a single daily balance snapshot.
ZARPY addresses this limitation by enabling yield accrual in real time. Approved partners stake ZARP and receive ZARPY on a one-to-one basis. From the moment funds are staked, yield begins accumulating continuously based on a rate set by Inves Capital and benchmarked against the published rate of the Old Mutual Money Market Fund, less a service fee.
The model allows participants to stake ZARP for any duration and earn yield corresponding to that exact period. Partners may also unstake at any time, with no lock-up period and no minimum stake requirement.
How ZARPY Operates and the Safeguards Behind It
The staking process is designed around a one-for-one relationship between ZARP and ZARPY. Institutional partners stake ZARP into the ZARPY smart contract and receive an equivalent amount of ZARPY. When they choose to exit, they can return ZARPY and immediately receive the corresponding ZARP balance on-chain.
Yield is tracked automatically and can be claimed as additional ZARPY whenever the holder chooses. Claimed yield also becomes yield-bearing, allowing participants to compound returns at their preferred intervals.
Inves Capital states that several safeguards support the structure:
- Every ZARPY is backed by one staked ZARP held within the smart contract.
- Yield creation is limited to actual returns earned by Inves Capital’s reserves.
- Reserve holdings are independently attested.
- Smart contracts undergo audits before deployment.
- ZARP itself is backed by reserves managed by Old Mutual Wealth.
The company emphasizes that ZARPY is a permissioned product intended exclusively for approved institutional partners rather than retail users or open decentralized finance participants.
ZARPY introduces a blockchain-based approach to managing rand-denominated liquidity by enabling yield accrual that operates continuously rather than through daily snapshots or traditional settlement cycles. By linking returns to the Old Mutual Money Market Fund benchmark while allowing 24/7 staking and unstaking with no minimum amounts or fixed terms, the product offers approved institutional participants a new mechanism for deploying idle capital. The solution is currently operating in a live pilot with approved partners as Inves Capital expands access to eligible institutions.