Mesh launches a yield-bearing yZAR stablecoin

To invest on Mesh.trade, users convert their money into mZAR, a fully collateralised South African ZAR stablecoin that’s based on Mesh’s open fiat stablecoin framework. “The system works well, as it enables investors to transact in our digital space using a fully digital stablecoin currency,” says Rob Mackay, Investor Manager Lead at Mesh.trade. And because 1 mZAR is always equal to 1 ZAR, it’s easy for Mesh users to know how much money they have available to invest.

“But we found a point of friction, where some Mesh.trade users who had funded their account were sitting with balances that were lying stagnant and not earning interest,” he says. “They wanted to put that money to good use, rather than letting it lie idle. And that’s where the yZAR concept was born.”

yZAR is fully integrated into the Mesh.trade platform, which enables seamless and fee-free swaps, between yZAR and mZAR.

yZAR is a new smart asset, designed to close the liquidity gap between the platform’s asset issuance and settlement rails. It is, at its core, a fiat stablecoin like mZAR, the difference is that yZAR adds guaranteed yield, indexed to trusted South African money market instruments via appointed yield providers, without sacrificing liquidity or control.

yZAR: A Yield-bearing stablecoin

“What makes yZAR unique is that it’s a yield-bearing stablecoin, which serves as a liquidity anchor,” says Mackay. “It’s also a store of value – it earns yield daily and pays it monthly. This is a game-changing asset for our ecosystem, as it brings native yield to ZAR holders, investors and companies.”

yZAR is liquid, smart, and seamlessly integrated into the Mesh.trade platform. It is significantly different from other stablecoins (like USDC or EURC), which don’t earn yield and often lack regulatory clarity; and from money market funds, which can have longer settlement times or require manual onboarding. “It’s also better than a bank savings account, which typically offers low returns and limited flexibility,” says Mackay.

As South Africa’s first truly yield-bearing ZAR stablecoin, “yZAR earns yield automatically, every single day, making it ideal for investors who are waiting for the next opportunity or who are between deals,” says Mackay.

Put idle capital to work

yZAR puts idle capital to work, turning investors’ ZAR into a yield-generating asset. Its yield is guaranteed, accruing daily and compounding monthly and the investor’s balance earns yield from day one – on balances as low as 1 ZAR.

“This gives investors the ability to hold for short periods of time and still earn yield,” MacKay says. “Traditionally, this would not be available on other platforms.”

“It’s also flexible,” he adds. “yZAR is tradable 24/7 on Mesh. Once swapped back to mZAR you can withdraw it back into your ZAR bank account within 24 hours, with no fixed terms or notice periods. And as a Mesh.trade user, you have full visibility and access to your yZAR, via your Mesh wallet.”

“The message with yZAR is simple,” MacKay concludes. “Don’t let your ZAR sit still. Rather turn it into a yield-generating asset with South Africa’s first yield-bearing digital Rand. yZAR offers a guaranteed yield with maximum flexibility. And it’s not just a digital currency. It’s productive capital, available to you within 24 hours.”

To invest in yZAR, register for Mesh.trade and view the asset overview