Fasset has received a provisional license from Malaysia’s Labuan Financial Services Authority (FSA) to establish what the company describes as the first stablecoin-powered “Islamic digital bank.”
The license permits Fasset, an all-in-one financial super app, to operate within a regulated sandbox focused on Shariah-compliant financial products, according to a company announcement on Tuesday.
“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 charging interest (riba), avoids excessive risk and uncertainty (gharar), and forbids investment in industries considered harmful or unethical, such as alcohol, gambling, or adult entertainment.
Expansion into Islamic Digital Banking
With this approval, Fasset—serving 500,000 users across 125 countries—can now offer deposit-taking services, cross-border payments, and zero-interest banking.
Headquartered in Dubai, the company aims to replicate the success of Latin America’s NuBank in underserved markets across Asia and Africa. Fasset provides digital savings, yield products, and investment access to US stocks, gold, and cryptocurrencies.
Fasset also plans to introduce a crypto debit card for everyday spending and launch “Own,” an Ethereum Layer 2 solution built on Arbitrum for settling real-world assets. The company has already secured licenses in the United Arab Emirates, Indonesia, Turkey, and the European Union.
The Labuan FSA license allows a financial entity to operate within Malaysia’s Labuan International Business and Financial Centre (IBFC), a regulated offshore financial hub. However, it is not equivalent to a full digital banking license from Bank Negara Malaysia.
Stablecoins Gain Traction in Payments
Stablecoins are increasingly being used in cross-border payments. Last month, Visa launched a pilot program enabling banks to pre-fund international transactions using Circle’s USDC and EURC stablecoins.
The announcement followed Swift’s collaboration with Ethereum developer ConsenSys and over 30 financial institutions to develop a blockchain-based settlement platform, designed to facilitate 24/7 real-time cross-border payments.
