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Stable Coin as a service ? What’s that ???
We have heard about SAAS – Which is software as a service, means that software is being offered as a service rather than we build it ourselves on our own. Similarly here stable coins service is being offered on the blockchain platform through which banks, financial institutions and Insurence companies may process their settlements.
Hope you heard about Stable coins.
In case if not – a stable coin is a crypto or token whose value is pegged to the fiat currency rate and is of same value thus avoiding the volatility.
In addition to that, stablecoins also enable enhanced functionalities like internet of things (IoT) payments, micropayments, programmable payments, and cross spending across payment ecosystems
We often hear that banking transactions and settlments sometimes take days and weeks to settle depending on the forex and settlement norms that are associated with the countries and defined processes.
Here in the usecase, Tech mahindra is offering a solution where the BFSI’s will be settling off the transactions on the blockchain platform by using the stable coins represnting the settlement amounts.
Combining the speed and scalability these blockchain solutions offer, security and audit trials it offers this is going to revolutionize the way the BFSI operates.
Permitting the use of Stable coins by the US chartered Banks has led tech mahindra to offer a similar solution to Indian banks.
Now, Tech Mahindra will help customers integrate Quantoz’ NEXUS platform (Netherlands based) into their legacy infrastructure, which will enable automated token, crypto and fiat transaction processing for a variety of banking and payment functions.
Bengaluru: Tech Mahindra Ltd has partnered Quantoz, Netherlands-based blockchain application incubator, to launch ‘stablecoin-as-a-service’ blockchain solution for global banks and financial institutions.
The usage of Stablecoins as a payment mechanism has significant potential to reduce transaction costs and processing time, while providing auditability and enhancing security.
“This collaboration is in consideration of the OCC (Office of the Comptroller of Currency) announcement allowing federally chartered US banks to use stablecoins for standard banking functions like payments and transactions. This will accelerate the regulated use of blockchain and has the potential to boost its adoption across banking vertical,” Tech Mahindra said in a statement.
Stablecoins are digital tokens that offer stability by pegging their value to certain assets like fiat currency or commodities. In addition to optimizing digital payments, stablecoins also enable enhanced functionalities like internet of things (IoT) payments, micropayments, programmable payments, and cross spending across payment ecosystems.
“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, that are transforming payment systems and prevent exit of customers to other avenues for payments and money remittances,” said Rajesh Dhuddu, Blockchain and Cybersecurity Practice Leader, Tech Mahindra.
As part of the engagement, Tech Mahindra will help customers integrate Quantoz’ NEXUS platform into their legacy infrastructure, which will enable automated token, crypto and fiat transaction processing for a variety of banking and payment functions.
Blockchain continues to grow as a major pillar in Tech Mahindra’s digital transformation portfolio and is increasingly becoming a part of the company’s wide range of business verticals. Tech Mahindra provides a holistic framework called ‘Block Ecosystem’ which can be used to create valuable applications that create value for clients.
Source of this Post – Mint
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