Malaysia approved the issuance of a temporary banking license to FinTech company Fasset, allowing it to launch the world’s first Islamic digital bank operating with stablecoins.
Global financial super-app Fasset received approval from the Labuan Financial Services Authority (FSA) to provide banking services, The Digital Banker reports.
The company, which already serves over 500,000 users across 125 countries, will now be able to offer a full range of digital banking services within a regulated financial sandbox aligned with Islamic banking principles.
In 2025, Fasset’s institutional partner client base grew tenfold, while annual transaction volume exceeded $6 billion, with projections to reach $24 billion by the end of 2026. With the new license, the company is expanding its offerings, from digital asset investments to deposit services and zero-interest banking products.
In addition to its license in Malaysia, Fasset already holds approvals from regulators in the UAE, Indonesia, the EU, Turkey, Pakistan, and other jurisdictions. This enables the company to provide a wide range of Sharia-compliant products, from secured loans to yield-generating assets.
Furthermore, in the coming months, Fasset plans to launch its own blockchain platform, Own, a Layer 2 solution built on Arbitrum within the Ethereum ecosystem. This platform will enable settlements for transactions involving tokenized real-world assets (RWA) issued by regulated financial institutions.
Fasset CEO and Co-Founder Mohammad Raafi Hossain emphasized that, contrary to skeptics’ claims, Islamic financial solutions have the potential to scale globally, banks can be built on cryptocurrencies, and financial freedom is achievable for emerging markets. According to him, Fasset proves this in practice by creating the world’s first fully Sharia-compliant bank powered by stablecoins.
According to a press release, Fasset aims to replicate the success of Brazil’s NuBank in Asia and Africa, bringing mass access to financial services for local users. Bank analysts note that in 2025, Islamic finance industry assets surpassed $5 trillion and could double by 2030. Despite rising demand, access to Sharia-compliant financial products remains limited in many Islamic countries.
Earlier this year, CoinsPaid CEO Max Krupyshev highlighted that stablecoins became a symbol of crypto adoption. Their key value lies in stability and universality, enabling businesses worldwide to bypass local banking restrictions, accelerate cross-border payments, and reduce costs. In essence, stablecoins form a new layer of financial infrastructure that combines the advantages of digital technologies with the reliability of traditional currencies, paving the way for a more inclusive and equitable global economy.
Mohammed AlKaff AlHashmi, Co-Founder of Islamic Coin, previously wrote in an exclusive column for CoinsPaid Media about how Muslim FinTech solutions are opening the path to global financial inclusion.
