Financial Stability Board

FSB.

Monitoring systemic risk and ensuring financial stability in the age of digital assets

9+9
Recommendations
100%
G20 Coverage
10
Stablecoin Rules
Annual
Review Cycle
Overview

FSB.

The FSB's 2023 framework consists of two sets of recommendations: 9 high-level recommendations for crypto-asset activities and markets, plus 10 revised recommendations for global stablecoin arrangements. Together, they establish the global baseline for how digital asset platforms must manage systemic risk, protect consumers, and maintain financial stability.

AfriVest incorporates the FSB's recommendations with particular attention to three areas: financial stability monitoring (ensuring our platform cannot create systemic contagion), reserve transparency for stablecoins (full backing, independent audits, and real-time attestation), and systemic risk controls (circuit breakers, concentration limits, and stress testing).

Established
2009
Headquarters
Basel, Switzerland
Members
G20 + 6 international bodies
Scope
Financial stability, systemic risk, stablecoin oversight
How It Works

How FSB Stability Framework Works

A structured, standards-based flow, designed to align with FSB at every step.

1
Step 1

Risk Identification

The FSB framework requires continuous monitoring of interconnections between crypto markets and traditional finance, identifying concentration risks, leverage buildup, and contagion channels.

2
Step 2

Reserve Management

Global stablecoins must maintain 1:1 reserves in high-quality liquid assets, with independent attestation and real-time transparency, preventing the collapse scenarios seen in 2022.

3
Step 3

Governance & Controls

Platforms must have independent risk committees, board-level accountability for financial stability, and clear escalation procedures for stress events.

4
Step 4

Stress Testing

Regular stress testing against extreme scenarios, bank runs, market crashes, liquidity crises, with pre-planned response procedures and adequate capital buffers.

5
Step 5

Recovery & Resolution

Every platform must have a credible recovery and resolution plan, ensuring that even in failure, client assets are protected and systemic contagion is contained.

Key Principles

The core tenets of the standard.

The principles that define FSB, and how AfriVest is designed to align with them.

01

Same Activity, Same Risk, Same Regulation

Crypto-asset activities that pose equivalent risks to traditional finance must be subject to equivalent regulation, no regulatory arbitrage through technology relabeling.

02

Reserve Adequacy

Stablecoins must maintain full reserves in high-quality liquid assets, with independent attestation, real-time transparency, and clear redemption rights for holders.

03

Systemic Risk Monitoring

Platforms must monitor and report their interconnections with traditional finance, enabling regulators to identify and address systemic risk buildup before it materializes.

04

Governance & Accountability

Clear governance structures with board-level accountability for risk management, including independent risk committees and qualified compliance officers.

05

Operational Resilience

Robust technology infrastructure, business continuity planning, and cybersecurity measures, ensuring platforms can withstand operational disruptions without systemic impact.

06

Cross-Border Coordination

International cooperation between regulators to address the inherently cross-border nature of crypto-asset markets, preventing regulatory gaps and arbitrage.

FSB Financial Stability Architecture

How AfriVest manages systemic risk and ensures financial stability

Click any component to explore details

Input Sources
Market Data
Real-time feeds
Reserve Status
Stablecoin backing
Counterparty Data
Exposure monitoring
Stress Scenarios
Monthly simulations
Risk Identification Layer
Concentration Monitor
Single-party limits
Leverage Tracking
System-wide exposure
Contagion Mapping
Interconnection risk
Liquidity Monitor
Real-time reserves
Reserve & Transparency Layer
1:1 Reserve Proof
USD at CBZ Bank
Third-Party Attestation
Quarterly audit
Real-Time Dashboard
Public transparency
Redemption Engine
72-hour full payout
AfriVest Financial Stability Engine
Governance & Controls Layer
Risk Committee
Independent oversight
Board Reporting
Quarterly escalation
Circuit Breakers
Auto-halt triggers
Capital Buffers
Excess reserves
Stress Testing & Resolution Layer
40% Market Crash
Monthly scenario
30% Bank Run
Redemption stress
Counterparty Default
Contagion test
Wind-Down Plan
Orderly resolution
Output Destinations
Regulators
Stability reports
Investors
Risk transparency
Central Banks
Systemic monitoring
Board & Governance
Decision support

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