29.07.2021

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Tech Mahindra develops a tool for conducting bank settlements in stablecoin

Tech Mahindra develops a tool for conducting bank settlements in stablecoin

The Indian technology company Tech Mahindra, together with the incubator Quantoz, is developing a new service that will allow banks and financial institutions to make payments in stablecoins.

Tech Mahindra announced that it has signed an agreement with the Dutch blockchain-based application incubator Quantoz to jointly develop a tool for integrating stablecoins into the 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 operations. Given that in January, the Office of the Comptroller of the Currency (OCC) allowed federal banks to use open blockchains and stablecoins to make payments, banks will now be able to legally work with stable cryptocurrencies.

The head of the blockchain and cybersecurity Department at Tech Mahindra, Rajesh Dhuddu, believes that the OSS ‘ explanations on the use of stablecoins will help increase the demand for them among financial organizations, as well as stimulate the development of innovations in international payment systems. By making payments in stablecoins, banks will be able to retain their customers who use cryptocurrencies, and even attract new users.

As part of the partnership, Tech Mahindra will help banks integrate with the Nexus platform created by Quantoz. This is necessary for making payments with fiat and digital currencies, managing loyalty programs, and monitoring reserves.

Henry de Jong, Director of Business Development at Quantoz, said that Tech Mahindra and Quantoz have previously collaborated in the field of digital payments using blockchain. Therefore, the companies are looking forward to introducing the joint solution to new customers in the United States.Last year, Tech Mahindra partnered with Amazon Web Services to create blockchain-based solutions that will track supply chains in various industries.