Fasset Secures Malaysia License for World’s First Stablecoin Islamic Digital Bank

Fasset has secured a provisional license from Malaysia’s Labuan Financial Services Authority (FSA) to launch what it calls the world’s first stablecoin-powered “Islamic digital bank.” The approval allows the Dubai-based fintech to operate within a regulated sandbox under Malaysia’s Labuan International Business and Financial Centre (IBFC), focused on developing Shariah-compliant financial products and services.

Fasset CEO Mohammad Raafi Hossain said the milestone marks a new chapter for Islamic fintech. “We can now combine the credibility of a global banking institution with the innovation of a fintech insurgent that’s fully halal,” he stated.

Islamic finance operates under Shariah law, which prohibits interest (riba), excessive risk (gharar), and investments in industries considered unethical, such as alcohol, gambling, or pornography. Fasset’s move into Islamic digital banking aims to serve the growing demand for halal financial solutions, especially across underbanked markets in Asia and Africa.

The new license enables Fasset to offer deposit-taking services, cross-border payments, and zero-interest banking to its 500,000 users spread across 125 countries. The company also plans to roll out a crypto debit card for everyday transactions and introduce “Own,” an Ethereum layer-2 network built on Arbitrum for settling real-world assets.

Inspired by the success of NuBank in Latin America, Fasset wants to become a one-stop digital finance platform, providing savings, yield, and investment access to US stocks, gold, and crypto—all within a halal framework.

This development comes amid growing global momentum for stablecoins in payment systems, following Visa’s pilot program using Circle’s USDC and EURC, and Swift’s blockchain settlement initiative with Consensys and 30 major financial institutions.