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.<\/p>\n
Using the blockchain, it enables the public to purchase and settle unit trusts directly from fund managers in a secure environment.<\/p>\n
The ZAR X system reinvents the traditional way of administering unit trusts using digital technologies as its foundation.<\/p>\n
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.<\/p>\n
The new blockchain system provides regulators and investors with full transparency and transaction history in real-time.<\/p>\n
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.<\/p>\n
This effectively means the blockchain provides a single version of the truth and eliminates the need for reconciliations.<\/p>\n
The Adhara components allow for the unit trusts and cash to be tokenised on the same ledger. This ensures all transactions occur \u2018on-chain\u2019, providing real-time Delivery vs Payment (DvP) settlement.<\/p>\n
The project will go live in the last quarter of this year and will be available on the\u00a0ZAR X website<\/a><\/strong>\u00a0and the ZAR X Mobi App.<\/p>\n
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