Blockchain-Based Framework for Launching Multi-Currency Stablecoins

Project background 

Overview

A European fintech startup focused on digital asset innovation approached us with the goal of developing a stablecoin that avoids overreliance on a single fiat currency. They were dissatisfied with the volatility and regulatory risks associated with USD-pegged stablecoins and wanted to launch a decentralized currency backed by a weighted portfolio of global fiat currencies. They also needed a system that could scale across different EVM-compatible networks while offering built-in mechanisms for governance and regulatory compliance.

The client had a rough technical vision but required help defining the architecture and ensuring long-term viability. Our role was to bring this idea to life by designing and delivering a full framework that included everything from smart contract logic and oracle integrations to a backend for KYC/AML compliance.

Project Goals

• Create a stablecoin pegged to a basket of fiat currencies.
• Build a system that automatically rebalances reserves based on FX rates.
• Ensure transparency and verifiability through blockchain.
• Support scalability and integration with other EVM-compatible networks.
• Comply with KYC/AML regulations.

Challenges

• Designing a rebalancing algorithm that could dynamically adjust reserves in real-time.
• Integrating reliable oracle feeds to fetch accurate and up-to-date currency exchange rates.
• Ensuring the stablecoin remained stable across market fluctuations while minimizing slippage.
• Maintaining compliance with international financial regulations across multiple jurisdictions.
• Building a system scalable enough to run on Ethereum while keeping gas fees low.

Our approach

Solution

We worked closely with the client’s finance team to define the basket weighting and rebalancing rules. A governance module was introduced to allow fine-tuning of reserve ratios and asset weights. To minimize dependency on one blockchain, we designed the solution to work on Ethereum and Polygon using EVM-compatible smart contracts. We also used Chainlink Oracles to provide real-time exchange rates and IPFS to store historical data.

The final framework included a smart contract system for minting and burning stablecoins, collateral management, and governance. A backend component handled KYC/AML checks and generated compliance-ready reports for regulators. Chainlink Oracles were used to bring in exchange rate data, and the stablecoin logic dynamically adjusted collateral composition to maintain the peg. IPFS was used for storing non-sensitive historical transaction records, while PostgreSQL tracked operational data.

The stablecoin can now be deployed with configurable weights for different fiat currencies. The system allows fast integration for fintech startups or governments looking to explore digital currencies.

Team

The project was delivered by a cross-functional team consisting of blockchain engineers, a backend developer, a compliance advisor, a DevOps specialist, and a product manager. Together, they combined deep expertise in DeFi protocols, cloud infrastructure, smart contract development, and regulatory alignment to ensure the solution was both technically robust and ready for the financial market.

Results

The stablecoin system was deployed successfully on testnets and demonstrated high performance across multiple environments. Rebalancing logic worked seamlessly during simulations of FX volatility, maintaining peg within an acceptable threshold. The backend modules passed internal compliance reviews, and the KYC/AML process was integrated using mock users in accordance with real-world regulatory flows. The client praised the clarity of our architecture, which enabled them to onboard new partners and start planning commercial pilots. After deployment, the client began conversations with regional banks and financial regulators about using this framework as a foundation for future CBDC explorations.

This project was selected for demo at a regional fintech innovation event, where it received strong interest from investors and institutional players. It also sparked discussions with two national-level banking groups exploring multi-currency stablecoin initiatives. The architecture and approach were later referenced in a whitepaper on regulatory-compliant DeFi practices for emerging markets.