mZAR & yZAR Monthly Note – January 2026
Monthly, operator-led reporting on mZAR and yZAR, highlighting backing, liquidity, risk, and yield management by Mesh.
mZAR and yZAR are ZAR-denominated stablecoins managed by Mesh.trade. mZAR is a fully backed ZAR stablecoin designed for trading and settlement, while yZAR is a yield-bearing ZAR stablecoin that prioritises liquidity access and conservative risk management.
Monthly Context
mZAR and yZAR play distinct roles within the same ecosystem. December is the period that most clearly tests whether those roles are executed as intended.
Global year-end conditions typically put significant pressure on liquidity. Christmas is the annual global stress test where everyone discovers cash is, in fact, useful. Balance sheets tighten to support increased spending, redemption timelines matter more than yield, and the difference between theoretical and actual access becomes visible.
Throughout this period, Mesh.trade focused on one outcome: dependable access with no operational surprises.
mZAR continued to operate as a true ZAR stablecoin, optimised for trading, settlement, and interaction with digital asset markets, while being conservatively managed and fully backed. In parallel, yZAR continues to grow as a true yield-bearing stablecoin, where return generation remains subordinate to liquidity availability and capital protection.
1. Executive Snapshot
As at 31 December 2025. Reported by Mesh Mint.
Mesh Mint is the bankruptcy remote structure in which collateral pertaining to mZAR and yZAR is held.
Total AUM (mZAR + yZAR) | 15,072,510.24 |
mZAR Month-on-Month AUM Change
| 308.12% |
yZAR Month-on-Month AUM Change | -1.49% |
mZAR AUM | 13,330,700.90 |
yZAR AUM | 1,903,114.83 |
Backing Ratio | 100% |
yZAR Annual Net Yield (December) | 5.00% |
Liquidity Access for yZAR | ≤ 1 hour during working hours |
Net Inflows | 9,922,926.12 |
Audit Status | Periodic independent audit performed by Acredo and reconciliation completed; no material exceptions noted |
2. mZAR Product Update
mZAR: Fully-Backed ZAR Stablecoin
Purpose
mZAR is a ZAR-denominated stablecoin designed for trading, settlement, and seamless interaction with the digital asset ecosystem, while maintaining price stability and high availability.
Design Principle
mZAR is structured as a true stablecoin: 100% backed by ZAR, and actively managed. This structure allows users to gain ZAR exposure without balance-sheet or issuer-credit risk.
Operational Confirmation
Mesh Mint maintained backing for all mZAR in circulation at or above 100% throughout December 2025, including over the year-end period. Liquidity access remained available in line with policy, with no material changes to structure, custody arrangements, or operational risk.
3. yZAR Product Update
yZAR: Yield-Bearing ZAR Stablecoin
Purpose
yZAR offers yield-bearing exposure to low-risk ZAR-denominated instruments while maintaining high liquidity and a conservative capital management approach.
Performance Commentary
During December 2025, yZAR delivered a stable net yield of 5.0%, consistent with prior periods. This yield was achieved while maintaining full liquidity access and conservative risk parameters throughout the year-end period. No duration extension or liquidity trade-offs were introduced, and redemption access remained uninterrupted.
4. Mesh Mint Treasury & Risk Note
Year-end periods tend to expose weak liquidity assumptions. During December, Mesh Mint deliberately maintained higher-than-normal liquidity buffers across both mZAR and yZAR, even where this meant foregoing marginal yield.
Mesh.trade optimised reserve account structures to increase liquidity availability, improve asset safety, and prepare the infrastructure required to support higher yZAR yields in the coming months.
This included the introduction of an additional notice account for yZAR liquidity with the same banking provider, allowing Mesh Mint to better segment transactional liquidity from yield-generating balances and improve access while maintaining conservative risk controls.
Risk & governance summary:
- Backing confirmation: All issued units remained backed at ≥100% throughout the period
- Liquidity monitoring: No breaches observed
- Material risk events: None
Last completed review: 30/12/2025 - No material governance or compliance issues were identified during the reporting period.
5. Usage & Growth Highlights
December activity reflected continued utilisation of mZAR for settlement and trading purposes, alongside steady demand for yZAR as a low-risk yield instrument through the year-end close.
Highlights
- Net inflows: R 9,922,926.12
- Month-on-month AUM change: 308.12%
- Primary usage drivers: Trading and settlement activity (mZAR)
6. Additional Tokenised Assets
In addition to mZAR and yZAR, the platform facilitates tokenised exposure to selected regulated assets. These assets are reported separately and do not affect the backing, liquidity, or risk profile of mZAR or yZAR.
7. Outlook
As the market moves into 2026, Mesh.trade will continue to manage mZAR and yZAR with emphasis on predictable liquidity and conservative backing.
As yZAR assets under management scale and liquidity usage patterns become more observable, Mesh.trade intends to incrementally increase yield in line with that growth. Any yield adjustments will be informed by ongoing liquidity stress testing and real-world redemption behaviour.
8. Disclosures
This update is provided for informational purposes only and does not constitute an offer, solicitation, or investment advice. Past performance is not indicative of future results.
mZAR | yZAR
Managed by Mesh.trade. Protected by Mesh Mint.
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For more press information, please contact:
Connie Bloem, Product owner of Mesh:
hello@meshtrade.co / +1 604 671 4515