India’s Second largest company Tata Consultancy Services to launch Crypto offerings
How tapping into the Indian Crypto Market is not a child’s play
Recently, on 8th July, Tata Consultancy Services launched QuartzTM a “smart solution to help financial institutions offer cryptocurrency trading” along with Quartz, a startup accelerated by the conglomerate itself. The solution is architectured to leverage cryptocurrencies, stable coins pegged to fiat, and public blockchain networks.
TCS has also addressed how their solution can now help banks and investment firms offer their customers the pros of cryptocurrencies; low transaction costs, and faster cross border remittance along with its ability to transfer value digitally.
TCS is a multinational technology service and consulting company listed on formerly known as Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India. It is the second-largest Indian company by market cap and its parent company Tata Group operates in 46 countries.
What does this mean?
TCS entering openly into the crypto market is the one bullish signal Indian crypto traders have waited for since 2018 – for a tech giant to enter the Crypto space.
Even though the telecom conglomerate of India, Reliance Jio, is rumored to have a Jio coin in-the-making, no official statement has been released around it. While Jio is working on multiple blockchain-based applications it has managed to keep the crypto side of things under the radar.
On the other hand, TCS has explicitly spoken about Cryptocurrencies previously and now offers services for it. In their official press release, Global Head at Quartz, TCS spoke about how cryptocurrencies are “poised to become viable alternate avenues for investments, hedging and portfolio diversification”.
TCS claims QuartzTM to be a trustable, secure and a scalable solution to trade, store and transfer cryptocurrencies; something which many Indian cryptocurrency exchanges are still trying to cope with.
Although TCS has the ability to capture the majority of the Indian market one important point that we all may be missing is the audience it’ll cater to.
The product is purely B2B. It’s a part of the blockchain/crypto “suite” it offers.
“The suite comprises Smart Solutions, a set of ‘designed for distributed ledger technology’ business offerings for different industries; the Quartz DevKit, a low code smart contract development kit to enable programming of high quality code on multiple technologies; the Quartz Gateway for the integration of existing solutions with varied ecosystems; and, the Quartz Command Center that can administer and monitor entire ecosystems.” – TCS Press Release
The Quartz Smart Solution for Crypto Services comes integrated with a “hardware security module” that enables cryptographic signing of each transaction, to ensure security and authenticity. Features like multi-signature wallets with an in-built authorization engine enables configurable transaction approval policies.
It also provides blockchain forensic checks, auto reconciliation and compliance alerts. This positions the product as a perfect fit for entrepreneurs trying to build an exchange or existing portfolio managers that can use it to open doors for Cryptocurrency trading.
The product is still ahead of its time
Since the cryptocurrency market in India is not easy to crack. The chaff was separated from wheat when crypto exchanges shut during the bear run in 2018 and the ones that remained have managed to gain more insights than any. They’ve developed trust amongst its users, heavily invested in customer support related activities, run user-targeted engagement programs and even secured millions in funding.
The world’s largest exchange Binance has acquired local exchange Wazirx and is marketing multiple products for the Indian community along with fiat gateways. Not just this, big protocol companies such as Ethereum and Aeternity have also penetrated into the blockchain developer community of India with various accelerator/hackathon programs. The competition to acquire Indian crypto users has become tougher than ever.
Along with this, regulations are yet not in place. For this B2B solution to work, banks need to be open to the idea of cryptocurrencies and with RBIs conservation approach, tapping into the crypto community in India might be more difficult than we can fathom.
The biggest challenge is acquiring SMEs and MSMEs who are most in need of a product for seamless cross border remittances but still are stuck on solutions from the 1960s such as Tally to maintain their books.
With one of the biggest populations in the world, India also stands as one of the biggest hubs for blockchain technology. Second to the US, India holds over 25,000 blockchain developers, 210+ startups and is the home to one of the most growing cryptocurrency trader bases, globally.
Even though blockchain is in its ‘nascent’ stages Indian Conglomerates are exploring its horizons while many have already implemented the decentralized technology in their ecosystems.
On the crypto side, India has yet not taken a stance as to regulate cryptocurrencies or walk with the opposition Reserve Bank of India to ban cryptocurrencies altogether. Irrespective of the indecision, Indian giants are knee-deep into the cryptospace while growing startups have also launched their rockets to the moon.
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