- Fasset received a provisional license from Malaysia’s Labuan Financial Services Authority (FSA) to operate a stablecoin-powered Islamic digital bank.
- The license permits Fasset to offer Shariah-compliant deposit services, cross-border payments, and zero-interest banking within a regulated Sandbox.
- The company serves 500,000 users across 125 countries and plans to expand financial products including a crypto debit card and digital asset settlements.
- Fasset aims to serve underserved markets in Asia and Africa by offering access to savings, investments, and yield-generating products.
- Other developments in the sector include new stablecoin payment pilots by VISA and blockchain-based settlement initiatives by Swift and its partners.
Fasset, a Dubai-based financial technology company, secured a provisional license from the Labuan Financial Services Authority in Malaysia. This license allows the firm to launch what it calls the first stablecoin-powered “Islamic digital bank” and operate in a regulated sandbox for Shariah-compliant products.
With this approval, Fasset can provide deposit-taking services, cross-border payments, and banking with no interest fees. The company said it serves half a million users in 125 countries and will extend services like digital savings, investments in U.S. stocks, Gold, and cryptocurrencies.
“We can now combine the credibility of a global banking institution with the innovation of a fintech insurgent that’s fully halal,” Fasset CEO Mohammad Raafi Hossain stated in the announcement. The new license allows operations in the Labuan International Business and Financial Centre, though it is not the same as a full digital banking license issued by Bank Negara Malaysia.
Fasset plans to introduce a crypto debit card for daily transactions and launch “Own,” an Ethereum layer-2 solution using Arbitrum technology for settling real-world assets. The company also holds licenses in the United Arab Emirates, Indonesia, Turkey, and the European Union.
Islamic finance operates under Shariah law, which prohibits charging interest, discourages excessive uncertainty, and avoids investment in sectors like alcohol, gambling, or entertainment considered harmful. The firm aims to replicate digital banking models seen in Latin America, bringing them to markets in Asia and Africa.
In related news, Visa started a pilot program with banks using Circle’s USDC and EURC stablecoins for cross-border payments. Swift recently collaborated with ConsenSys and more than 30 financial institutions to develop a blockchain settlement platform for real-time international payments. These moves highlight growing momentum for stablecoins in global finance.
For more, see the official releases from Fasset and Labuan FSA’s banking FAQ.
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