Indian multinational technology firm Tech Mahindra is developing a new stablecoin service targeting banks and financial institutions.
The tech giant announced Monday that it has entered into an agreement with Dutch blockchain application incubator Quantoz to launch a “stablecoin-as-a-service” tool to reduce transaction costs and processing times.
The new collaboration targets potential clients from the banking and financial sector as the United States’ Office of the Comptroller of the Currency officially allowed federally chartered U.S. banks to use public blockchains and stablecoins for settlements in January 2021.
Rajesh Dhuddu, blockchain and cybersecurity leader at Tech Mahindra, said: “The recent OCC announcement promoting the use of stablecoins for the settlement of financial transactions by banks will spur demand and drive innovation in global payments.”
As part of the strategic collaboration, Tech Mahindra will help customers integrate Quantoz’s Nexus transaction processing platform into their legacy infrastructure. The platform supports both fiat and cryptocurrencies, offering multiple functions including remittances, payments, loyalty and treasury management.
The new partnership marks another milestone in Tech Mahindra and Quantoz’s cooperation as the companies previously collaborated on blockchain-based digital payments. “We look forward to bringing our solution to new U.S. customers together with Tech Mahindra as we have previously successfully cooperated on other projects,” Quantoz chief business development officer Henri de Jong said.