APA – Lagos (Nigeria)
The Islamic Development Bank Institute (IsDBI) has kicked off building a prototype for its patent-pending Smart Stabilization System. The start of the prototype development came in the wake of a meeting on 16 October 2023 among the partners in the project.
The system is based on an algorithm to maintain the stability of assets traded on organized markets. It can be adapted for any kind of asset type, including shares, Sukuk, and digital currencies, as well as central banks’ digital currencies (CBDCs).
The in-depth analysis conducted by the Institute demonstrated the system’s potential to significantly reduce the volatility of the traded asset without the need for capital or external reserves.
According to the report distributed by the APO Group on behalf of Islamic Development Bank Institute, this project aligns with the Institute’s strategic objective to provide fintech knowledge solutions to the Islamic finance industry in IsDB Member Countries and worldwide.
The Knowledge Solutions Team at the Institute is leading the project in partnership with SettleMint, a blockchain transformation company that supports developers to integrate blockchain technologies into applications. The company was established in 2016 in Belgium, with offices in Saudi Arabia, the United Arab Emirates, India, and Singapore.
GIK/APA
IsDBI kicks off development of a Smart Stabilization System Prototype
