Fasset, a Dubai-headquartered fintech firm, has received provisional approval from Malaysia’s Labuan Financial Services Authority (FSA) to establish what it calls the world’s first stablecoin-powered “Islamic digital bank.” The new platform will operate within Labuan’s regulated financial sandbox, providing Shariah-compliant banking services that integrate blockchain innovation with ethical Islamic finance principles.
“We can now combine the credibility of a global banking institution with the innovation of a fintech insurgent that’s fully halal,” said Mohammad Raafi Hossain, CEO of Fasset.
Shariah-Compliant Digital Finance Through Stablecoins
Islamic finance follows Shariah law, which prohibits interest-based lending (riba), excessive uncertainty (gharar), and investment in non-halal industries such as gambling or alcohol. Fasset’s model seeks to modernize this system using stablecoins to facilitate transparent, fast, and zero-interest digital transactions.
The Labuan FSA license allows Fasset to provide deposit-taking, cross-border payments, and digital savings products, all within a compliance-focused Islamic framework. The company aims to serve the 500,000 users already on its platform and expand to underserved markets across Asia and Africa, where access to traditional financial services remains limited.
Global Expansion and Blockchain Integration
Fasset has also received licenses in the UAE, Indonesia, Turkey, and the European Union, strengthening its position as a cross-border fintech leader. The firm plans to launch an Ethereum Layer 2 network called “Own,” built on Arbitrum, designed for settling real-world assets such as gold, stocks, and cryptocurrencies.
Additionally, the company is preparing to roll out a crypto debit card to enable daily halal spending, seamlessly linking blockchain technology with practical financial access.
The approval for Fasset comes as stablecoins gain momentum in global payments. Recently, Visa introduced a pilot program allowing banks to pre-fund cross-border transactions using Circle’s USDC and EURC stablecoins, while SWIFT began testing blockchain integrations with Ethereum developer Consensys and more than 30 major financial institutions.
By merging Islamic finance principles with blockchain-powered stability, Fasset’s entry into Malaysia marks a defining step toward ethical digital banking — one that could reshape financial inclusion for millions across emerging markets.
Disclaimer
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