Fasset's Stablecoin Bank Redefines Financial Inclusion for 2 Billion Muslims

Dubai-based fintech firm Fasset has secured a provisional banking license from Malaysia's Labuan Financial Services Authority (FSA), marking a significant milestone as the first entity to launch a stablecoin-powered Islamic digital bank. The license, granted under a regulated sandbox framework, enables Fasset to offer Shariah-compliant savings, financing, and investment products using stablecoins and tokenized assets. This move aligns with Fasset's broader strategy to bridge traditional Islamic finance with blockchain innovation, addressing gaps in financial inclusion for Muslim-majority regions. The platform, which already serves 500,000 users across 125 countries, reported annualized transaction volumes exceeding $6 billion and aims to reach $24 billion by year-end 2026.

Fasset's new services will include zero-interest savings accounts, cross-border payments, and a planned crypto debit card compatible with Visa, Google Pay, and Apple Pay. The firm also intends to launch "Own," an Ethereum Layer 2 network built on Arbitrum, to facilitate on-chain settlements for real-world assets. These offerings are designed to comply with Islamic finance principles, which prohibit interest (riba) and emphasize ethical investing. The company'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 that's fully halal," positioning Fasset as a leader in Islamic digital finance.

The Labuan FSA license allows Fasset to pilot its services within the Labuan International Business and Financial Centre (IBFC), a regulated offshore hub in Malaysia. While the license does not equate to a full digital banking license from Bank Negara Malaysia, it provides a foundation for future expansion. Fasset's existing regulatory footprint includes licenses in the UAE, Indonesia, the EU, Turkey, and Pakistan, reflecting its global compliance strategy. The firm's Malaysian operations are part of a broader effort to scale its Islamic fintech solutions across Asia and Africa, where access to halal financial products remains limited.

Fasset's platform already processes over $6 billion in annualized transactions, driven by demand for Shariah-compliant alternatives to conventional banking. The company's focus on asset-backed savings and investment options-such as gold, equities, and digital tokens-addresses a key challenge in Islamic finance: balancing ethical constraints with financial utility. Analysts note that Fasset's integration of stablecoins and tokenization could enhance liquidity and accessibility, particularly in emerging markets where traditional banking infrastructure is underdeveloped.

The project faces challenges, including navigating regulatory complexities and ensuring technical scalability. However, Fasset's prior experience with regulatory frameworks, such as its Dubai Virtual Asset Service Provider (VASP) license, positions it to manage these risks. The firm's planned Ethereum Layer 2 network, Own, aims to reduce settlement costs and improve transaction efficiency for real-world assets, further differentiating its offerings in the Islamic finance sector.

This development underscores a growing trend of blockchain adoption in Islamic finance, where technological innovation is reshaping traditional practices. By leveraging stablecoins and decentralized infrastructure, Fasset is pioneering a model that could redefine financial inclusion for over 2 billion Muslims globally. As the firm prepares to launch its services, the success of its stablecoin-powered Islamic bank will depend on its ability to scale securely while maintaining compliance with both Islamic law and international financial standards.