Fasset Secures Malaysia License for World's First Stablecoin-Powered Islamic Digital Bank

Executive Summary

Fasset, a global financial superapp, has obtained a provisional banking license from Malaysia, enabling it to launch the world's first stablecoin-powered, Shariah-compliant Islamic digital bank. This development positions Fasset to expand its services from digital asset investing to full-service banking, targeting financial inclusion in Asia and Africa. The move signals a crucial step in integrating digital assets into traditional financial frameworks, particularly within the growing Islamic finance sector.

The Event in Detail

On October 7, 2025, Fasset secured approval from Malaysia to provide banking services, specifically a provisional license to operate within a regulated sandbox for Islamic fintech innovations. This license allows Fasset to establish itself as a deposit-taking institution, offering asset-backed banking services on-chain through its secure financial superapp. The expanded offerings include zero-interest banking products and investments in U.S. stocks, gold, and cryptocurrencies, all facilitated via stablecoins. Fasset also plans to introduce a crypto debit card for online and in-store purchases wherever Visa is accepted, including Google Pay and Apple Pay.

Central to Fasset's infrastructure is the planned launch of Own, an Ethereum Layer 2 network built on Arbitrum. This network is designed for the settlement of real-world assets (RWAs) from regulated institutions. It incorporates specific tools for RWA handling, such as token standards with optional compliance features and verification systems for underlying assets, including Shariah-compliant options and commodity ETFs.

Fasset has a global user base of 500,000 and has established a robust regulatory foundation through multiple licenses across jurisdictions including the UAE, Indonesia, the EU, Turkey, and Pakistan. The platform currently records over US$6 billion in annualized volume, with projections to reach US$24 billion by the end of 2026.

Market Implications

This initiative has significant implications for the US$5 trillion global Islamic finance industry, which is projected to double by 2030. Fasset's approach directly addresses the limited access to Shariah-compliant financial products across the pan-Islamic belt by leveraging stablecoins and blockchain technology. The introduction of Shariah-aligned products, such as collateralized loans and asset-backed financing, delivered through a digital bank, could drive substantial adoption among underserved populations.

The integration of stablecoins and Ethereum Layer 2 solutions for regulated RWA settlement sets a precedent for how digital assets can be incorporated into highly regulated financial sectors. The strategic comparison to NuBank in Latin America highlights Fasset's ambition to serve as a mass-market gateway to financial inclusion in Asia and Africa.

Expert Commentary

Mohammad Raafi Hossain, CEO and Co-Founder of Fasset, emphasized the company's disruptive vision:

"We've been told for years what's 'impossible': that Islamic finance can't go global, that banks can't be built on crypto, that financial freedom isn't for emerging markets. We're here to prove otherwise. We can now combine the credibility of a global banking institution with the innovation of a fintech insurgent..."

Hossain further stated the uniqueness of their approach:

"...we're determined to be both: a fully Shariah-compliant bank that runs on stablecoin rails. That's what makes this approval unique."

Broader Context

Fasset's license from Bank Negara Malaysia marks a critical regulatory milestone, validating a crypto-native banking model within a traditional financial framework. This move could catalyze broader regulatory acceptance of digital asset-powered financial services globally, particularly in emerging markets where financial inclusion remains a challenge. The success of Fasset in bridging the gap between Islamic finance principles and blockchain innovation may influence other jurisdictions to explore similar regulatory frameworks. It further underscores the growing trend of tokenized real-world assets and the potential of Web3 technologies to revolutionize conventional banking by offering efficient, compliant, and accessible financial products.