Fasset, a digital finance platform, has received a provisional license from Malaysia’s Labuan Financial Services Authority (Labuan FSA) to launch the world’s first Islamic digital bank powered by stablecoins. This milestone allows Fasset to operate in a regulated sandbox environment, offering financial services that are fully Shariah-compliant, interest-free, and tailored for underserved Muslim-majority regions.
The new Islamic digital bank will offer deposit-taking and cross-border payment services, all while adhering strictly to Islamic financial principles. Unlike conventional banks, Fasset will not operate under Malaysia’s central bank, but within the jurisdiction of Labuan’s offshore financial center. The move integrates the credibility of traditional banking with the technological innovation of modern fintech. As Fasset’s CEO Mohammad Raafi Hossain puts it, “We can now combine the credibility of a global banking institution with the innovation of a fintech insurgent that’s fully halal.”
With this license, Fasset is expanding its reach beyond its current user base of over 500,000 people across 125 countries. The company aims to close the financial inclusion gap in emerging markets by offering ethical, transparent, and accessible banking solutions. All services will be delivered through Fasset’s all-in-one financial super app, making it easier for users to manage digital assets, savings, and payments in one place.
Looking ahead, Fasset plans to launch a crypto debit card to enable everyday halal spending using stablecoins such as USDC and EURC. This feature will allow users to make seamless, compliant transactions globally while maintaining alignment with Islamic financial guidelines. Additionally, the company is preparing to launch “Own,” an Ethereum Layer 2 network built on Arbitrum. This new infrastructure will facilitate real-world asset settlement, helping users move value across borders with speed and compliance.
Fasset currently offers access to tokenized gold, US stocks, and cryptocurrencies through its platform. The planned expansion into zero-interest digital savings and yield-generating products linked to both real-world and digital assets demonstrates Fasset’s broader ambition to become a global leader in Islamic digital finance.
The company’s regulatory approval in Malaysia complements its existing licenses in the UAE, Indonesia, Turkey, and the European Union. These licenses position Fasset to expand aggressively across Asia and Africa, where it aims to replicate the successful fintech model seen with companies like NuBank.
This announcement comes at a time when stablecoins are gaining increased traction within global banking and settlement frameworks. Industry leaders such as Visa and Swift have recently explored using USDC and EURC for cross-border payments and blockchain-based settlements, signaling strong institutional support for the direction Fasset is taking.
Fasset’s entry into the Islamic digital banking space represents a major step forward in ethical and inclusive financial innovation. With a focus on Shariah compliance, blockchain technology, and global scalability, Fasset is well-positioned to reshape the future of Islamic finance.