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Tech Mahindra To Begin A New Stablecoin Service For Financial Institutions

Tech Mahindra is partnering with Quantoz in launching a ‘Stablecoin-As-A-Service’ blockchain solution for financial institutions. Stablecoins gives the facility to process a payment without undergoing much difficulty. Stablecoins attain the significant potential to “reduce transaction costs and processing time while providing auditability and enhancing security.”

The collaborations followed the OCC (Office of the Comptroller of Currency) announcement, that allowed US banks to utilize stable coin for performing various banking functions that include processing payments and transactions.

The digital token, stablecoins possess stability by pegging their value with fiat currencies, preventing high volatility. Tech Mahindra signifies that ‘stablecoins also enable enhanced functionalities like IoT (Internet of Things) payments, micropayments, programmable payments, and cross spending across payment ecosystems’ to boost digital payments.

Rajesh Dhuddu, Blockchain and Cybersecurity Practice Leader, Tech Mahindra, said:

The recent OCC (office of the comptroller of currency) announcement promoting the use of stablecoins for the 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.

Tech Mahindra to launch ‘Stablecoin-as-a-Service’ Blockchain Solution with Quantoz for Global BFSI Customers – https://t.co/IlYH89hZ2h | #Tech_Mahindrahttps://t.co/IlYH89hZ2h — CRN India (@crndotin) April 5, 2021

The announcement details:

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.

We are very proud and happy to partner with @tech_mahindra to offer our StableCoin as a Service solution to US banks! More information, also about our upcoming StableCoin webinar, on our website: https://t.co/5jCkz3juvl — Quantoz (@Quantoz) April 6, 2021

Henri de Jong, Chief Business Development Officer of Quantoz, said:

Quantoz has focused on the interface between the classical financial world and blockchain technology from the very beginning. With our recent ISO 27001 certification for information security management and our compliance-by-design methodology, we believe we have a superior stablecoin offering that can bring numerous benefits for standard banking services. We look forward to bringing our solution to new US customers together with TechMahindra as we have previously successfully cooperated on other projects.

As a segment of NXT.NOW framework to enhance ‘Human Centric Experience’, Tech Mahindra is further expanding its business verticals by investing in emerging technologies. Blockchain, being one of the prime strengths of Tech Mahindra’s digital transformation, the company is working on ‘solutions that enable digital transformation and meet the evolving needs of the customer.’

As per the announcement:

Tech Mahindra provides a holistic framework called ‘Block Ecosystem’ comprised of various levers: Block Studio, Block Engage, Block Talk, Block Geeks, Block Accelerate, Block Access & Block Value, which can be used to create industry-leading applications that unlock significant value for clients.
 
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