Following a meeting with its partners, the Islamic Development Bank Institute (IsDBI) has begun building a prototype for its patent-pending Smart Stabilization System.
The Smart Stabilization System is based on an algorithm for stabilizing the value of assets traded on centralized exchanges or organized markets. It can apply to any types of assets including Sukuk, shares and digital currencies as well as central banks’ digital currencies.
“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,” the IsDBI said. “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.”
To recap, the IsDBI in May this year partnered with Belgian blockchain company SettleMint to develop the system.
The institute also previously confirmed that it had submitted a patent application to the Intellectual Property Office of Singapore for the Smart Stabilization System. The IsDBI has already patented three other blockchain solutions.