Indian technology company Tech Mahindra is working with the Quantoz incubator to develop a new service that will allow banks and financial institutions to settle in stablecoins.
Tech Mahindra announced that it has entered into an agreement with the Dutch blockchain-based application incubator Quantoz to jointly develop a tool to integrate stablecoins into banking infrastructure. The tool is intended not only for banks, but also for firms operating in the financial sector.
According to the developers, the solution will reduce the costs of organizations when making transactions and reduce the time for processing transactions. Considering that in January the Office of the Comptroller of the Currency (OCC) allowed federal banks to use open blockchains and stablecoins for payments, banks will now be able to legally work with stable cryptocurrencies.
Rajesh Dhuddu, head of blockchain and cybersecurity at Tech Mahindra, believes that OSS’s clarifications on the use of stablecoins will increase demand for them among financial institutions, as well as stimulate the development of innovation in international payment systems. By making settlements in stablecoins, banks will be able to retain their clients using cryptocurrencies and even attract new users.
Through the partnership, Tech Mahindra will help banks integrate with Quantoz’s Nexus platform. This is necessary for making payments with fiat and digital currencies, managing loyalty programs, and monitoring reserves.
Quantoz Business Development Director Henri de Jong said Tech Mahindra and Quantoz had previously collaborated on digital payments using blockchain. Therefore, the companies are looking forward to introducing the joint solution to new customers in the United States.
As a reminder, Tech Mahindra partnered with Amazon Web Services last year to create blockchain-based solutions that will track supply chains across industries.