Indian multinational technology firm Tech Mahindra is developing a new Stablecoin service targeting banks and financial institutions.
The tech giant announced Monday that it has entered into an agreement with Dutch blockchain application incubator Quantoz to launch a “Stablecoin-as-a-service” tool to reduce transaction costs and processing time while providing auditability and enhancing security.
The new collaboration targets potential clients from the banking and financial sector. The US’ Currency Comptroller officially allowed federally chartered U.S. banks to use Stablecoins for standard banking transactions.This will accelerate the regulated use of blockchain and has the potential to boost its adoption across the banking vertical.
Rajesh Dhuddu, blockchain and cybersecurity leader at Tech Mahindra, said: “The recent OCC announcement promoting the use of stablecoins for the settlement of financial transactions by banks will spur demand and drive innovation in global payments.”
As part of the engagement, Tech Mahindra will help customers integrate Quantoz’s Nexus transaction processing platform into their legacy infrastructure. The platform supports both fiat and cryptocurrencies. Offering multiple functions including remittances, payments, loyalty, and treasury management.
The new partnership marks another milestone in Tech Mahindra and Quantoz’s cooperation. The companies previously also collaborated on blockchain-based digital payments. “We look forward to bringing our solution to new U.S. customers together with Tech Mahindra as we have previously successfully cooperated on other projects,” Quantoz chief business development officer Henri de Jong said.
Stablecoins are digital tokens that offer stability by pegging their value to certain assets like fiat currency or commodities. In addition to optimizing digital payments, stablecoins also enable enhanced functionalities like IoT (Internet of Things) payments, micropayments, programmable payments, and cross spending across payment ecosystems. Stablecoins have made huge strides over the last couple of years into becoming the core elements of the cryptocurrency ecosystem. Fiat currencies back the most common stablecoins. The equivalent fiat currency is held in reserves and can give in exchange for the Stablecoin.