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This paper presents a fast image sequence stabilization system that uses one bit transform (IBT) matching based global motion estimation and Kalman filtering based global motion correction. In order to facilitate a fast motion estimation process, image frames are initially converted into a single bit-plane representation using the IBT, and then motion vectors are evaluated matching the IBTs of two consecutive frames using Boolean operations. Because a binary representation is established, the computational complexity of motion estimation is significantly reduced providing a proportionate reduction in power consumption of custom hardware. The global motion vector is computed using local motion vectors of sub-image blocks to further increase the motion estimation speed. For the motion correction part, global motion vectors are accumulated to yield absolute frame displacements and Kalman filtering is employed to achieve stabilization.