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In a landmark move for global finance, Malaysia has granted Fasset a provisional license to operate the world’s first stablecoin-based Islamic digital bank, setting the stage for deeper integration between blockchain technology and Shariah-compliant banking.
Announced on October 7, 2025, the approval allows Fasset to operate within Malaysia’s Islamic fintech regulatory sandbox, paving the way for full-service, faith-based banking powered by stablecoins and tokenized assets.
The stablecoin-based Islamic digital bank will provide a bridge between traditional Islamic finance and decentralized finance (DeFi), a development closely watched by crypto investors, policy makers, and the general public across Muslim-majority markets.
The new license enables Fasset to offer a range of Shariah-compliant financial services, from asset-backed savings and zero-interest accounts to on-chain global payments, while adhering strictly to Islamic prohibitions on interest (riba).
Fasset’s stablecoin-based Islamic digital bank is designed to serve an estimated $5 trillion global Islamic finance market, which remains largely underserved by modern blockchain-based financial tools. By leveraging stablecoins, Fasset can offer deposit and investment products that preserve asset value while avoiding prohibited interest-bearing structures.
“With this approval, we’re combining the credibility of a global banking institution with the innovation of a fintech insurgent,” said Mohammad Raafi Hossain, CEO of Fasset, in a statement. “Our goal is to make financial access inclusive, transparent, and compliant with Islamic principles.”
Customers of the stablecoin-based Islamic digital bank will be able to hold and manage deposits, invest in assets such as U.S. stocks, gold, and cryptocurrencies, and use a planned Visa-linked crypto card for everyday transactions.
The company will also roll out “Own,” an Ethereum Layer 2 network built on Arbitrum, to facilitate the settlement of regulated real-world assets on-chain, a move that integrates compliance and efficiency in financial transactions.
Fasset’s push to create a stablecoin-based Islamic digital bank is rooted in its mission to close financial inclusion gaps in Asia and Africa, where millions remain unbanked or lack access to halal financial products.
“The stablecoin-based Islamic digital bank is a timely innovation,” said Hossain, emphasizing its role in giving Muslim users access to asset-backed, inflation-protected savings options. “Shariah forbids all forms of interest, but that should not mean exclusion from digital financial innovation.”
By linking its stablecoin system to real-world assets, Fasset’s model provides stability against inflation and currency volatility, two major challenges facing developing economies. The bank’s architecture ensures users can preserve their wealth in compliance with Islamic law while benefiting from modern fintech tools.
The Malaysian approval follows Fasset’s 2024 license in Dubai to operate as a Virtual Asset Service Provider (VASP). The Dubai- and Jakarta-based firm already processes over $6 billion in annualized transaction volume across 125 countries. This latest milestone further cements Fasset’s position as a pioneer in the convergence of Islamic finance and blockchain technology.
By combining trust, innovation, and transparency, the stablecoin-based Islamic digital bank could set a new benchmark for ethical, tech-driven finance, transforming how faith-based financial systems engage with the digital economy.
