Tech Mahindra Ltd., an Indian technology company, has teamed up with Quantoz, a Dutch blockchain application incubator, to create a new blockchain stablecoin service aimed at global financial institutions. After the Office of the Comptroller of the Currency (OCC) cleared federal banks in the United States to use stablecoins for routine banking operations including making purchases and handling transactions, the two tech firms intend to capitalize. The transition would help to encourage the controlled adoption of blockchain technology, which could help banks adopt it.
The enigmatic Satoshi Nakamoto introduced Bitcoin in 2009, ushering in a new era for the financial world. Bitcoin, like any other emerging technology, has received its fair share of criticism over time. The inherent price uncertainty of cryptocurrencies like Bitcoin and Ethereum is one of the key arguments used to invalidate them. Despite the fact that uncertainty was common among crypto assets in their early days, many solutions have been devised to address the problem.
The popularity of stablecoins is increasing.
Over the past few years, stablecoins have advanced to become one of the most important components of the cryptocurrency ecosystem. The growth of DeFi and the expansion of stablecoins were two of the most phenomenal crypto developments of 2020. Fiat currencies are used to back the most common stablecoins. The stablecoin’s corresponding fiat currency is kept in reserves and can be exchanged for it.
Using stablecoins to process payments has many advantages, including reduced transaction costs and processing time, as well as increased protection and transparency. Tech Mahindra will assist banks in integrating Quantoz’s NEXUS platform into their legacy finance network as part of the collaboration frameworks. For various banking and settlement functions, this will allow automated token, fiat, and cryptocurrency processing. The NEXUS blockchain platform can handle a variety of activities, including loyalty, treasury, remittances, and ecosystem settlements.
Tech Mahindra’s digital transformation relies heavily on blockchain technology.
The Indian tech giant’s digital switch portfolio has included blockchain technology as a mainstay. Tech Mahindra was named to Forbes’ top 50 blockchain companies list for 2021 earlier this year as a leading digital transformation provider. The latest strategic collaboration with Quantoz, headquartered in the Netherlands, is the second time the two tech firms have collaborated on digital payments.