India’s Tech Mahindra has partnered Dutch blockchain startup Quantoz to launch “Stablecoin-As-A-Service” (SCaaS) blockchain solution for global banks and financial institutions. The solution will enable lower transaction processing costs, bring-in military-grade security and drive faster settlements on blockchain.
The Indian technology company is primarily targeting U.S. banks and financial institutions with the Stablecoin solution after the Office of the Comptroller of the Currency (OCC) recently authorized federally chartered US banks to use Stablecoins for standard banking functions like payments and transactions.
As part of the solution, 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 will also be capable of handling multiple functions like loyalty management, remittances, ecosystem payments and treasury management.
The usage of Stablecoins as a payment mechanism has significant potential to reduce transaction costs and processing time, while providing auditability and enhancing security for digital payment through the use of the underlying blockchain technology.
The OCC’s authorization is expected to accelerate the regulated use of blockchain and has the potential to boost its adoption across banking vertical. It will also spur demand and drive innovation in global payments.
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 said it has always focused on the interface between the classical financial world and blockchain technology. It has previously successfully cooperated with TechMahindra on other projects like blockchain-based digital payment solutions.
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