Tech Mahindra, a leading digital transformation provider, consulting, and business reengineering devices and solutions, has collaborated with Netherlands-based Quantoz, an innovative blockchain technology application incubator, specialized in building and integrating blockchain-based solutions. Both the firms aim to launch a 'Stablecoin-As-A-Service' blockchain solution for global banks and financial institutions. The platform can handle multiple functions like loyalty management, remittances, ecosystem payments, and treasury management.
Tech Mahindra has stated that the usage of stablecoins as a payment mechanism has significant potential to reduce the transaction cost and processing time while providing auditability and enhancing security. This collaboration is in consideration of the Office of the Comptroller of Currency (OCC) announcement allowing federally charted US banks to use stablecoins for standard banking functions, which include payments and transactions.
This partnership will accelerate the regulated use of blockchain and has the potential to boost its adoption across banking and financial verticals. Stablecoins are digital tokens that offer stability by pegging their value to certain assets like fiat currency or commodities. It will optimize digital payments and enable enhanced functionalities like micropayments, programmable payments, and cross spending across payment ecosystems.