Tech Mahindra has joined hands with Netherlands-based blockchain application incubator Quantoz to introduce a ‘stablecoin-as-a-service’ blockchain solution for financial institutions and global banks.
This collaboration will bring in military-grade security, enable less transaction processing cost and drive faster settlements. Tech Mahindra will aid customers coordinate with Quantoz’ NEXUS platform into their legacy infrastructure. This will allow crypto, automated token and fiat transaction processing for a wide range of payment and banking functions.
Using Stablecoins as a payment mechanism holds the important potential to lower processing time and transaction costs. In addition, it will enhance security and provide auditability. The partnership is being considered by the OCC (Office of the Comptroller of Currency) announcement. It will allow federally chartered US banks to use stablecoins for normal banking functions like transactions and payments.
According to Tech Mahindra, this will further boost the regulated use of blockchain and has the ability to accelerate its adoption across the banking sector. As per Blockchain and Cybersecurity Practice Leader, Tech Mahindra, Rajesh Dhuddu, banks can significantly benefit from stablecoins since they will aid them to compete with fintech.
Basically, digital tokens, stablecoins provide stability by fixing their value to specific assets like fiat commodities and currency. Besides optimizing digital payments, stablecoins also offer enhanced functionalities like micropayments, internet of things (IoT) payments, cross spending and programable payments.
Blockchain continues to grow as a major pillar in the digital transformation portfolio of Tech Mahindra. It is increasingly becoming an indispensable part of the company’s variety of business verticals. The company provides an integrative framework known as ‘Block Ecosystem’. It can be used to develop valuable applications that generate value for the clients.