Tech Mahindra partners Quantoz to offer Stablecoin as a Service to US banks

India’s Tech Mahindra Ltd. and the Netherlands-based blockchain technology firm Quantoz have launched ‘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 enhancing security.

Both firms are looking to tap opportunities after the OCC (Office of the Comptroller of Currency) allowed 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.

“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,” said Rajesh Dhuddu, blockchain and cybersecurity practice leader at Tech Mahindra.

As part of the engagement, Tech Mahindra will help customers integrate Quantoz’s 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.

Blockchain is a major pillar in Tech Mahindra’s digital transformation portfolio and is increasingly crossing the company’s wide range of business verticals.

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.

“Quantoz has focused on the interface between the classical financial world and blockchain technology from the very beginning. We believe we have a superior stablecoin offering that can bring numerous benefits for standard banking services,” said Henri de Jong, chief business development officer of Quantoz.