Fasset secures a Malaysian license to launch the first stablecoin-based Islamic digital bank, introducing Shariah-compliant finance.
Fasset has gained a provisional license from Malaysia’s Labuan Financial Services Authority (FSA) to launch the world’s first stablecoin-powered Islamic digital bank.
The company plans to offer fully Shariah-compliant banking products, including deposit accounts, cross-border payments and investment services.
Fasset’s Stablecoin Islamic Digital Bank Gains Approval
The new license has placed Fasset in a regulated sandbox that focuses on Islamic financial technology. This allows the Dubai- and Jakarta-based company to expand from its existing digital asset platform to full-service banking.
Fasset Gets Malaysia License
Fasset receives a provisional license to launch the first stablecoin-based Islamic digital bank in Malaysia, offering Shariah-compliant finance.
Will this reshape Islamic fintech? #IslamicFinance #Stablecoin #Fintech pic.twitter.com/pdnkrSVmUm
— Blockchain App Factory (@Blockchain_BAF) October 7, 2025
Fasset, which serves over 500,000 users in 125 countries and processes more than $6 billion in annualised transactions, is planning to offer deposit-taking services and yield-based savings products that comply with Shariah rules.
The platform will support investments in U.S. stocks, gold and crypto.
Customers will also be able to spend via a planned Visa-linked crypto debit card. Additionally, Fasset intends to launch “Own.” Own, in this case, is an Ethereum Layer 2 solution built on Arbitrum for settling real-world assets on-chain.
Shariah-Compliant Banking Powered by Stablecoins
Islamic finance also follows specific rules under Shariah law, which prohibits earning or paying interest (riba). It also discourages excessive risk and unethical investments.
Fasset is attempting to use stablecoins to offer an alternative to interest-bearing accounts, while helping users preserve asset value against inflation.
CEO Mohammad Raafi Hossain said that the license allows Fasset to combine the credibility of an international banking institution with the innovation of fintech. This approach directly addresses the financial inclusion gap in Muslim-majority markets, especially in regions with limited access to halal, asset-backed financial products.
Malaysia’s Push Toward Islamic Fintech
Malaysia is becoming a significant hub for Islamic crypto innovation. The country’s crypto market revenue is expected to reach around $484 million in 2025, with 2.8 million active users.
Recent regulatory reforms have also been put in place to reduce barriers for token listings and improve asset segregation rules on exchanges.
The Labuan FSA’s support for Fasset is also in line with Malaysia’s efforts to promote ethical and compliant financial technology. This move also works well with the country’s leadership in Islamic finance.
It also sets it up as a regional centre for regulated digital banking.
Expanding Access Across Asia and Africa
Fasset’s model targets regions where many individuals are unbanked or lack access to compliant financial products.
By offering services like zero-interest accounts and affordable cross-border payments, the company is aiming to reach millions of people left out of traditional banking systems.
The platform’s current licenses in the UAE, Indonesia, Turkey and the European Union have also strengthened its ability to scale operations across different markets.
Growing Intersection of Crypto and Islamic Finance
The rise of Islamic-compliant crypto products shows the increasing demand for ethical alternatives in digital finance.
Binance’s Shariah-compliant staking service, Bybit’s Islamic Account and Crypto.com’s partnerships with regional banks show that major institutions see value in serving this market.
These initiatives, alongside Fasset’s stablecoin-powered Islamic digital bank, show that blockchain solutions are increasingly intersecting with faith-based finance.
