Fasset has emerged victorious in its pursuit of a provisional license from Malaysia’s Labuan Financial Services Authority (FSA), enabling it to launch what it claims to be the first stablecoin-powered Islamic digital bank.

The company, an all-encompassing financial super app, can now operate within a regulated sandbox that emphasizes Shariah-compliant finance, targeting markets in Asia and Africa that are often overlooked.

“We can now combine the credibility of a global banking institution with the innovation of a fintech insurgent that’s fully halal,” said Fasset’s CEO, Mohammad Raafi Hossain.

Islamic finance operates under strict guidelines, avoiding practices such as charging interest (riba) and focusing only on transactions considered ethical.

Fasset’s Move into Islamic Digital Banking

With over 500,000 users across 125 countries, Fasset aims to offer various financial services including deposit-taking, cross-border transactions, and services free from interest. The firm seeks to emulate the successes seen by NuBank in Latin America, specifically focusing on regions that struggle with access to traditional banking.

Fasset Announcement Fasset teased new announcements ahead of its recent license.

In addition, Fasset plans to launch a cryptocurrency debit card and introduce “Own,” a layer 2 solution on Ethereum designed for settling real-world assets. The company has also secured licenses in the UAE, Turkey, Indonesia, and the European Union.

The Labuan FSA license allows its holder to operate within a designated offshore financial hub in Malaysia but is not equivalent to a full banking license issued by Malaysia’s Bank Negara.

Fasset’s expansion into stablecoin transactions is timely, especially as companies like Visa launch services to allow banks to pre-fund cross-border payments using stablecoins like USDC and EURC.

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