TLDR
- Fasset received a provisional license from Malaysia’s Labuan FSA to launch an Islamic digital bank.
- The digital bank will be powered by stablecoins and follow Shariah-compliant financial principles.
- The license allows Fasset to offer deposit-taking services and cross-border payments without charging interest.
- Fasset plans to issue a crypto debit card to enable everyday halal spending.
- The company will also launch an Ethereum Layer 2 network called Own for real-world asset settlements.
Fasset has secured a provisional license from Malaysia’s Labuan FSA to launch the first stablecoin-based Islamic digital bank. The company will now operate in a regulated sandbox focusing on Shariah-compliant financial products and services. This license enables Fasset to provide zero-interest banking, cross-border payments, and deposit-taking services.
Stablecoin-Backed Islamic Bank Secures Regulatory Green Light
Fasset received approval from the Labuan Financial Services Authority to offer Islamic financial services using blockchain infrastructure. The firm confirmed this marks the first stablecoin-based digital bank designed in line with Islamic banking principles.
With this license, Fasset will operate within Labuan’s regulated offshore financial center but not under Malaysia’s central bank. It now combines the innovation of fintech with full Shariah compliance for underserved Muslim-majority regions. CEO Mohammad Raafi Hossain said, “We can now combine the credibility of a global banking institution with the innovation of a fintech insurgent that’s fully halal.”
This move allows Fasset to expand its user base beyond its current 500,000 users across 125 countries. By enabling cross-border, interest-free, and ethical financial services, the company fills a gap in emerging markets. The firm will deliver services through its all-in-one financial super app.
Fasset Plans Crypto Debit Card Launch
Fasset plans to broaden its product suite with zero-interest digital savings and yield options linked to real-world and digital assets. It currently offers access to US stocks, cryptocurrencies, and tokenized gold through a single app.
It is also preparing to issue a crypto debit card to facilitate halal daily spending with stablecoins like USDC and EURC. This complements the launch of its new Ethereum Layer 2 network, “Own”, built on Arbitrum for asset settlements. These innovations aim to support seamless and compliant global transactions for Muslims.
Fasset has also secured licenses in the UAE, Indonesia, Turkey, and the European Union. This global positioning strengthens its push to become a digital banking leader. The company now seeks to mirror NuBank’s model across Asia and Africa.
The approval comes as stablecoins gain traction in global banking and settlement frameworks. Visa recently piloted pre-funded cross-border payments using USDC and EURC. This follows Swift’s collaboration with Consensys and global banks on a 24/7 blockchain-based settlement platform.
