Dubai-based digital banking and investment platform Fasset has received a provisional license from Malaysia’s Labuan Financial Services Authority (FSA) to operate what it calls the world’s first stablecoin-powered Islamic digital bank. This license allows Fasset to offer Shariah-compliant banking services—including deposit accounts, cross-border payments, and zero-interest financial products—within a regulated sandbox, targeting underserved markets across Asia and Africa.
Fasset CEO Mohammad Raafi Hossain highlighted the potential of combining global banking credibility with fully halal fintech innovation, enabling new possibilities for digital finance. Islamic banking prohibits charging interest, avoids excessive risk, and excludes investments in industries like alcohol, gambling, and pornography. Fasset’s platform leverages stablecoins as the foundation for savings, investments, and payments fully aligned with Shariah principles.
The company plans to issue a crypto debit card for daily spending and develop Own, an Ethereum Layer 2 on Arbitrum for real-world asset settlement. Already approved in the UAE, Indonesia, Turkey, the EU, and Pakistan, Fasset can now pilot its services within Malaysia’s Labuan International Business and Financial Centre, marking a key step toward full-service Islamic digital banking.
This milestone aligns with growing stablecoin adoption for payments, as seen in recent initiatives by Visa and SWIFT exploring blockchain-based cross-border settlement. With its Malaysian license, Fasset aims to expand from digital asset investing to comprehensive, Shariah-compliant banking, signaling the rising convergence of fintech, stablecoins, and Islamic finance in emerging markets.