Bridging Faith and Finance: Fasset's Stablecoin Bank Targets $5T Inclusion Gap
Aime Summary
Malaysia has granted Fasset, a Dubai- and Jakarta-based digital banking and investment platform, a provisional banking license to launch what the firm describes as the world's first stablecoin-powered Islamic digital bank[1]. The license, issued by the Labuan Financial Services Authority (Labuan FSA), allows Fasset to operate within a regulated sandbox focused on Shariah-compliant financial services[2]. This approval enables the company to expand its existing digital asset platform into full-service banking, offering zero-interest savings, financing, and investment products powered by stablecoins and tokenized assets[1]. Fasset plans to introduce a Visa-linked crypto card, enabling customers to spend digital assets seamlessly, and develop "Own," an EthereumETH-- Layer 2 network built on ArbitrumARB--, to facilitate on-chain settlements of real-world assets[2].
The initiative addresses a critical gap in financial inclusion within the $5 trillion global Islamic finance industry, where access to halal, asset-backed financial products remains limited, particularly in Asia and Africa[1]. Fasset's CEO, Mohammad Raafi Hossain, emphasized the hybrid model of combining "the credibility of a global banking institution with the innovation of a fintech insurgent"[2]. The platform currently serves 500,000 users across 125 countries, processing over $6 billion in annualized transaction volume[4]. By 2026, Fasset projects this figure to reach $24 billion, reflecting its rapid expansion[5].
Malaysia's regulatory environment has been evolving to accommodate digital assets, with the Securities Commission proposing reforms to streamline token listings on exchanges[5]. Under the new framework, tokens meeting predefined eligibility criteria could be listed without prior approval, reducing delays while ensuring stricter segregation of client assets[5]. This aligns with broader efforts to position Malaysia as a hub for Shariah-compliant crypto innovation, as evidenced by the Digital Asset Innovation Hub launched earlier in 2025[2]. The hub explores use cases such as programmable payments and supply chain finance under the supervision of Bank Negara Malaysia (BNM).
Fasset's model adheres to Islamic finance principles, which prohibit interest (riba), excessive uncertainty (gharar), and investments in harmful industries[2]. The company's stablecoin infrastructure allows users to preserve asset value without engaging in interest-bearing products, a critical feature for Shariah compliance[1]. The firm also plans pilot programs for digital savings and yield-bearing products, targeting underserved Muslim demographics, including Gen Z, who increasingly interact with Islamic banking tools[2].
The Labuan FSA license, however, is distinct from a full digital banking license from BNM, limiting Fasset's operations to the Labuan International Business and Financial Centre (IBFC) for now[4]. Despite this, the approval marks a significant milestone in integrating blockchain technology into traditional financial systems. Analysts note that the Islamic finance sector is projected to grow from $8 billion in 2025 to $12.5 billion by 2028[2], driven by demand for ethical financial alternatives.
Fasset's expansion underscores a broader trend of convergence between Islamic finance and crypto innovation. Other projects, such as Binance's Sharia Earn platform and Bybit's Islamic Account, have similarly sought to bridge the gap between halal finance and digital assets[5]. Malaysia's regulatory agility, coupled with Fasset's existing approvals in the UAE, Indonesia, the EU, and Turkey, positions the firm to scale its services across Muslim-majority regions[3].
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