Fasset's Stablecoin Bank Aims to Fill $5T Islamic Finance Gap

Fasset, a digital asset investment platform, has secured a provisional banking license from Malaysia's Labuan Financial Services Authority (FSA), positioning it to launch the world's first stablecoin-powered Islamic digital bankFasset Wins Malaysia License to Launch First Stablecoin-Based …^[1]. This license enables Fasset to operate within a regulated sandbox focused on Shariah-compliant financial products, expanding its existing digital asset platform into full-service bankingFasset wins Malaysia license for stablecoin-powered ‘Islamic …^[2]. The company, which already serves 500,000 users across 125 countries and processes over $6 billion in annualized transaction volume, aims to address gaps in financial inclusion within the $5 trillion global Islamic finance industryFasset secures provisional banking license to become world’s first …^[3].

Fasset's offerings will include Shariah-compliant savings, financing, and investment services leveraging stablecoins and tokenized assets. Customers will be able to hold deposits, invest in U.S. stocks, gold, and crypto, and spend via a planned Visa-linked crypto debit card. The platform will avoid interest-bearing products, aligning with Islamic principles that prohibit riba (interest) and emphasize asset-backed transactionsFasset Wins Malaysia License to Launch First Stablecoin-Based …^[1]. CEO Mohammad Raafi Hossain emphasized the fusion of "the credibility of a global banking institution with the innovation of a fintech insurgent," highlighting Fasset's ability to preserve asset value against inflation or currency swings through its stablecoin infrastructureFasset secures provisional banking license to become world’s first …^[3].

The Islamic finance sector, which prohibits excessive risk (gharar) and unethical investments, has faced persistent challenges in providing accessible, halal financial products in Muslim-majority regions. Fasset's model targets underserved markets in Asia and Africa, where demand for Shariah-compliant services is growing. The company projects its annualized transaction volume to reach $24 billion by year-end 2026, driven by its expanding ecosystem of asset-backed offeringsFasset secures provisional banking license to become world’s first …^[3].

Fasset's regulatory approach includes multiple licenses across jurisdictions such as the UAE, Indonesia, Turkey, and the EU, reinforcing its compliance framework. The Labuan FSA license, while not equivalent to a full digital banking license from Bank Negara Malaysia, authorizes operations within the Labuan International Business and Financial Centre (IBFC), a regulated offshore financial hubFasset wins Malaysia license for stablecoin-powered ‘Islamic …^[2]. The firm also plans to launch "Own," an Ethereum Layer 2 network built on Arbitrum, to settle real-world assets on-chainFasset Wins Malaysia License to Launch First Stablecoin-Based …^[1].

The provisional license marks a strategic milestone for Fasset, transitioning from a digital asset platform to a full-service banking entity. By integrating stablecoin rails with Shariah-compliant principles, Fasset aims to redefine accessibility in Islamic finance, offering zero-interest banking, cross-border payments, and asset-backed savings. The company's expansion into Malaysia follows a Dubai-based Virtual Asset Service Provider (VASP) license and underscores its ambition to replicate the success of Latin American fintech NuBank in emerging marketsFasset wins Malaysia license for stablecoin-powered ‘Islamic …^[2].