mZAR & yZAR Monthly Update – February 2026
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
Stablecoin adoption continues to be framed through headline figures. In 2025, on-chain stablecoin flows reached roughly $33 trillion, a figure that confirms these rails are now being used at scale for settlement, liquidity management, and balance sheet movement.
January activity reinforced where most of that usage still sits. A large share of stablecoin volume continues to be driven by infrastructure-level activity, including exchange rebalancing, treasury movements, and protocol-level settlement, particularly as markets reset positions after year-end. This signals operational maturity, but it is distinct from stablecoins being embedded in underlying economic structures.
What this means for local-currency stablecoins
For ZAR-denominated stablecoins, adoption is less about aggregating global liquidity and more about whether the token is used consistently within domestic economic activity.
Against that backdrop, mZAR’s signal in January went beyond value, moving through the system. Alongside balances held, an increasing share of activity on Mesh reflected assets issued, priced, and accounted for in mZAR. This points to a shift from mZAR being used purely as a settlement instrument toward functioning as a unit of account.
Assets denominated in mZAR increased by 97.05% month-on-month during January.
Flows indicate that the infrastructure is working. Denomination indicates that economic behaviour is changing. The metrics below reflect how mZAR is progressing along that curve.
1. Executive Snapshot
As at 30 January 2026. Reported by Mesh Mint.
Mesh Mint is the bankruptcy remote structure in which collateral pertaining to mZAR and yZAR is held.
Total AUM denominated in mZAR | 245,465,543.10 |
Total AUM (mZAR + yZAR) | 19,020,026.39 |
mZAR Month-on-Month AUM Change
| 29.13% |
yZAR Month-on-Month AUM Change | 0% |
mZAR AUM | 17,107,046.58 |
yZAR AUM | 1,912,979.81 |
Backing Ratio | 100% |
yZAR Annual Net Yield (December) | 5.00% |
Liquidity Access for yZAR | ≤ 1 hour during working hours |
Net Inflows | 3,859,344.7 |
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. 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 January. Liquidity access remained available in line with policy, with no material changes to structure or operational risk.
3. yZAR Product Update
yZAR: Yield-Bearing ZAR Stablecoin
- Purpose
yZAR provides yield-bearing exposure to low-risk ZAR instruments while preserving high liquidity and conservative capital management.
- January Outcome
During January 2026, 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.
- February Adjustment
Effective 01 February 2026, yZAR yield increased by 0.125%. This adjustment reflects increased confidence in liquidity behaviour and reserve performance.
4. Mesh Mint Treasury & Risk Note
January was a period of normalisation and operational continuity following the year-end positioning completed in December. The changes implemented during December to support liquidity resilience across both mZAR and yZAR were run in steady state throughout the month.
Treasury operations functioned fully within established policy parameters, with no deviations from expected liquidity, backing, or risk thresholds. Reserve structures, monitoring processes, and governance controls operated as designed, providing consistent and dependable access across both stablecoins during this reporting period.
January also served as a validation phase for the infrastructure and controls put in place in December, ensuring readiness for the gradual increase of yield for yZAR under normal market conditions.
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: 31/01/2026
5. Usage & Growth Highlights
January activity reflected continued utilisation of mZAR for settlement and trading, alongside steady demand for yZAR as a low-risk yield instrument. In addition, January saw a material increase in assets denominated in mZAR, indicating broader usage beyond transactional activity.
Highlights
- Net inflows (mZAR and yZAR): R 3,859,344.74
- Month-on-month AUM change (mZAR and yZAR): +51.2%
- Primary usage drivers: Trading, settlement, and asset denomination (mZAR)
- Total AUM denominated in mZAR: mZAR 245,465,543.10 (+97.05% MoM)
6. Outlook
During February, Mesh.trade will continue to manage mZAR and yZAR with an emphasis on predictable liquidity, conservative backing, and operational consistency.
Focus will be placed on further increasing the issuance and denomination of assets in mZAR, reinforcing its role as a unit of account within the Mesh ecosystem.
The announced 0.125% increase in yZAR yield, effective 01 February, reflects increased confidence in observed liquidity behaviour and assets under management, while remaining fully within established risk and liquidity parameters
7. 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