The titan of India’s technology industry, Tech Mahindra, is bolstering its new Stablecoin-as-a-Service blockchain solution with backing from the Dutch applications developer Quantoz. This development reflects the steady rise in popularity for this comparatively hassle-free payment mechanism, and the corporate rat race to stake out a mutually beneficial claim on assimilating cryptocurrency has begun. Tech Mahindra has a head start on facilitating the shift for financial institutions, as blockchain is a touchstone for the digital transformation of its enterprise.
The starting gates officially opened when the U.S. Office of the Comptroller of Currency recently ruled that federally chartered American banks will be allowed to use stablecoin for routine functionality such as transactions and payments. Stablecoin is designed to temper the volatility of unpegged cryptocurrencies and embody the ever-elusive element of stability in financial dealings by attaching to existing assets. It augments digital payment abilities with cross-spending, IoT capability, and customizable programming. Allowances for coveted audit visibility and tighter security, and access to tools constructed for remittances and treasury management has banks practically chomping at the bit.
A key aspect of the partnership is that Quantoz is bringing its NEXUS integration-platform-as-a-service to the table. When worked into Tech Mahindra’s legacy systems, NEXUS accounts for a wide range of processing functionality including crypto, fiat, and automated token transactions. “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, transform payment systems, and prevent exit of customers to other avenues for payments and money remittances," said Rajesh Dhuddu, Blockchain and Cybersecurity Practice Leader of Tech Mahindra.
In India, the cryptocurrency market may be on shaky ground after rumors of a nationwide restriction. Finance Minister Nirmala Sitharaman said that reports of a blanket ban on cryptocurrencies had been exaggerated, and upcoming rulings would take a carefully calibrated approach. Any prohibitive legislation might be an overreaction to the country’s overall embrace of the payment method.