Fasset Merges Blockchain and Islamic Principles to Fuel Financial Inclusion

Fasset, a Dubai- and Jakarta-based digital asset platform, has secured a provisional banking license from Malaysia to launch the world's first stablecoin-powered Islamic digital bank. The regulatory approval, announced on October 7, 2025, enables Fasset to offer Shariah-compliant savings, investment, and financing services using stablecoins and tokenized assets, addressing a significant gap in financial inclusion for Muslim-majority regions. The bank will operate within Malaysia's Islamic fintech sandbox, allowing it to expand its existing digital asset platform into full-service banking.

The new bank will cater to a global Islamic finance market valued at over $5 trillion in 2025, with projections of doubling by 2030. Services will include zero-interest accounts, asset-backed savings products, and investments in U.S. stocks, gold, and cryptocurrencies. A Visa-linked crypto card will facilitate spending, while Fasset's "Own" Ethereum Layer 2 network, built on Arbitrum, will settle regulated real-world assets on-chain. The CEO, Mohammad Raafi Hossain, emphasized the bank's mission to combine "the credibility of a global banking institution with the innovation of a fintech insurgent," targeting underserved populations in Asia and Africa.

Fasset's existing infrastructure already processes over $6 billion in annualized transaction volume across 125 countries, supported by regulatory approvals in the UAE, Indonesia, the EU, Turkey, and Pakistan. The company also holds a Category 3 Crypto-Asset Service Provider license in Dubai and has been testing blockchain-based asset tokenization since 2020. The new license expands its remit to include deposit-taking and Shariah-compliant banking, positioning it as a hybrid institution that aligns with Islamic principles, which prohibit interest (riba) and speculative investments.

Malaysia's regulatory framework for digital assets has been evolving to accommodate stablecoin integration. The Securities Commission proposed reforms in July 2025 to accelerate token listings on regulated platforms, reducing delays while ensuring client asset segregation. The approval of Fasset's model underscores a growing acceptance of blockchain technology in mainstream finance, particularly in Islamic banking, where stablecoins offer a transparent and ethical alternative to traditional interest-based systems.

The bank's launch is expected to drive financial inclusion by addressing barriers such as inflation, currency volatility, and limited access to halal financial products. For example, users will be able to protect their savings against inflation through asset-backed solutions and conduct cross-border transactions without relying on conventional banking infrastructure. Fasset also plans to leverage its existing institutional client base and retail user base of 500,000 to scale operations, with projected transaction volume reaching $24 billion by year-end 2026.

Industry analysts highlight the potential for Fasset's model to inspire other nations with large Muslim populations to adopt similar regulatory approaches. By bridging Islamic finance and blockchain, the bank could unlock capital in a sector that has been slower to adopt digital innovations. The success of this initiative may also influence traditional banks to explore stablecoin-based services, particularly in cross-border remittances and ethical investing.