Tech Mahindra and Netherlands-based Quantoz – an innovative blockchain technology application incubator are set to launch ‘Stablecoin-As-A-Service’ blockchain solution for global banks and financial institutions. The usage of stablecoins as a payment mechanism has significant potential to reduce transaction costs and processing time, while providing auditability and enhanced security.
The collaboration is in consideration of the OCC (Office of the Comptroller of Currency) announcement allowing federally chartered US banks to use stablecoins for standard banking functions like payments and transactions. This will accelerate the regulated use of blockchain and has the potential to boost its adoption across banking verticals.
Stablecoins are digital tokens that offer stability by pegging their value to certain assets like fiat currency or commodities. In addition to optimising digital payments, stablecoins also enable enhanced functionalities like IoT (Internet of Things) payments, micropayments, programmable payments and cross spending across payment ecosystems.
Rajesh Dhuddu, Blockchain and Cybersecurity Practice Leader, Tech Mahindra, said: “The recent OCC announcement promoting the use of stablecoins for settlement of financial transactions by banks will spur demand and drive innovation in global payments. Tech Mahindra’s strategic collaboration with Quantoz will enable lower transaction processing costs, bring-in military-grade security and drive faster settlements. Banks can benefit significantly from stablecoins as they will help them compete with Fintech, that are transforming payment systems and prevent exit of customers to other avenues for payments and money remittances.”
As part of the engagement, Tech Mahindra will help customers integrate Quantoz’ NEXUS platform into their legacy infrastructure, which will enable automated token, crypto and fiat transaction processing for a variety of banking and payment functions. The platform is capable of handling multiple functions like loyalty management, remittances, ecosystem payments and treasury management.
Henri de Jong, chief business development officer of Quantoz, said, ‘We look forward to bringing our solution to new US customers together with TechMahindra as we have previously successfully cooperated on other projects.’
Blockchain continues to grow as a major pillar in Tech Mahindra’s digital transformation portfolio. As part of NXT.NOW framework, which aims to enhance ‘Human Centric Experience’, Tech Mahindra focuses on investing in emerging technologies and solutions that enable digital transformation and meet the evolving needs of the customer.