Fasset secures license for stablecoin Islamic digital bank

Fasset has obtained a provisional license from Malaysia’s Labuan Financial Services Authority (FSA) to launch what it describes as the first stablecoin-powered Islamic digital bank.

The license permits Fasset, a financial super app, to operate within a regulated sandbox that focuses on Shariah-compliant financial products.

“We can now combine the credibility of a global banking institution with the innovation of a fintech insurgent that’s fully halal,” said Fasset CEO Mohammad Raafi Hossain.

Islamic finance follows Shariah law, which prohibits interest (riba), limits excessive risk and uncertainty (gharar), and forbids investments in sectors deemed harmful or unethical such as alcohol, gambling, and pornography.

With this approval, Fasset plans to offer deposit-taking services, cross-border payment solutions, and zero-interest banking targeted at underserved markets in Asia and Africa.

The Dubai-based company currently serves 500,000 users across 125 countries and aims to replicate Latin America’s NuBank success in emerging markets.

Fasset also provides digital savings, yield-generating products, and access to investments in US stocks, gold, and cryptocurrencies.

The company intends to release a crypto debit card for everyday use and is developing “Own,” an Ethereum layer 2 on Arbitrum for settling real-world assets.

Beyond Malaysia, Fasset has secured licenses in the UAE, Indonesia, Turkey, and the EU.

Labuan FSA’s license allows operation within the Labuan International Business and Financial Centre, a regulated offshore financial hub, but it does not equate to a full digital banking license issued by Malaysia’s central bank.

Stablecoin adoption is advancing globally, highlighted by Visa’s recent pilot allowing banks to prefund cross-border payments using Circle’s USDC and EURC stablecoins.

This follows Swift’s collaboration with Consensys and multiple financial institutions to develop blockchain-based settlement infrastructure aimed at enabling real-time 24/7 cross-border payments.