Digital asset platform Fasset has obtained a provisional banking license in Malaysia, paving the way for establishing the world's first Islamic digital bank powered by stablecoin technology.
The license enables Fasset to operate within Malaysia's regulated Islamic fintech sandbox, allowing the company to expand its current digital asset services into comprehensive banking operations, according to the company's official announcement.
Under the new license, Fasset will provide Shariah-compliant financial services including savings accounts, financing solutions, and investment products utilizing stablecoins and tokenized assets. Customers will gain access to deposit services, investment opportunities in US stocks, gold, and cryptocurrencies, along with spending capabilities through a forthcoming Visa-linked crypto card.
CEO Mohammad Raafi Hossain stated the license merges "the credibility of global banking institutions with fintech innovation." The company also plans to launch "Own," an Ethereum Layer 2 network built on Arbitrum technology, designed for settling regulated real-world assets on blockchain.
Fasset's stablecoin infrastructure enables users to avoid interest-bearing products while protecting asset value against inflation and currency fluctuations, aligning with Islamic financial principles that prohibit riba (interest).
The initiative addresses significant financial inclusion gaps within the $5 trillion global Islamic finance industry, where access to halal, asset-backed financial products remains limited across many Muslim-majority regions, particularly in Asia and Africa.
Following its March 2023 Virtual Asset Service Provider (VASP) license in Dubai, the Dubai- and Jakarta-based company reports processing over $6 billion in annualized transaction volume across 125 countries through its existing platform.