Jeddah, Kingdom of Saudi Arabia:– The Islamic Development Bank Institute (IsDBI) is collaborating with the blockchain company SettleMint to develop a Smart Stabilization System (SSS). The System is an algorithm that aims to maintain the stability of assets traded on organized markets, including financial assets or digital currencies.

Founded in 2016 in Belgium, SettleMint has more than 60 Enterprise blockchain implementations worldwide. It offers a full-fledged Blockchain-Platform-as-a-Service solution. IsDBI, as the knowledge beacon of the IsDB Group, leads the development of knowledge-based solutions. The Institute has already secured patents for its three innovative fintech mechanisms with great potential for the financial industry.

Capital markets play an important role in mobilizing resources and allocating capital. This process is essential for economic growth and job creation. Yet, capital markets are prone to swings of speculative booms and busts that can be damaging to economic progress. Governments tend to play the role of the ultimate stabilizer of capital markets but at a huge cost to public funds and hard-earned reserves.

The objective of the SSS is to help stabilize organized asset markets without compromising efficiency. This is done by managing the gap between supply and demand to reduce the volatility of the price while maintaining the role of the gap in equilibrating the market. The patent-pending Smart Stabilization System is unique in managing the pressure on price before the price changes. The System is forward-looking, while most other stabilization systems are backward-looking. Moreover, the SSS is self-financed, and investors’ rights are fully protected.

IsDBI and SettleMint are investigating the use of blockchain and smart contracts to provide autonomous and transparent execution of the SSS.

Mr. Matthew Van Niekerk, the CEO of SettleMint, stated: “International trading activity has been the cornerstone of economic growth and prosperity for thousands of years. As we find ourselves in times of significant economic uncertainty, it is an honor to support the Islamic Development Bank Institute on the design and implementation of new mechanisms that can enhance the stability, transparency, and efficiency of trading activities globally.”

Dr. Sami Al-Suwailem, the Institute's Acting Director General, welcomed the collaboration on this project as a milestone in the progress of the Islamic fintech industry. He said: “The world is moving fast on the digitalization of financial transactions. This requires a robust stabilization system in place to minimize the instability associated with fast movements of funds, as has been proven by the recent banking crisis. I am pleased that my colleagues are capitalizing on the patent-pending Stabilization System to develop a practical solution to assist our Member Countries in achieving digital transformation with minimum financial instability.”

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About the Islamic Development Bank Institute

The Islamic Development Bank Institute is the knowledge beacon of the Islamic Development Bank Group. Guided by the principles of Islamic economics and finance, the IsDB Institute leads the development of innovative knowledge-based solutions to support the sustainable economic advancement of IsDB Member Countries and various Muslim communities worldwide. The IsDB Institute enables economic development through pioneering research and original economic analysis, human capital development, and knowledge creation, dissemination, and management. The Institute leads initiatives to enable Islamic finance ecosystems, ultimately helping Member Countries achieve their development objectives. More information about the IsDB Institute is available on https://isdbinstitute.org/

About SettleMint

SettleMint is the world’s most complete high-performance low-code blockchain development platform that empowers engineering teams to build, integrate and launch any blockchain application with speed and delivery at scale. By providing the world’s most complete full stack development experience, SettleMint enables enterprises and public organizations to quickly move from pilot to production and reap the full benefits of blockchain, whether they are looking to optimize backend processes, digitally transform their business or simplify complex and costly data exchange procedures. Build on any supported chain, in a managed cloud instance, bring your own cloud, or deploy fully on-premises. More information about SettleMint is available on https://www.settlemint.com