Malaysian fintech platform Fasset secures approval to launch stablecoin-powered Islamic digital bank

Global fintech platform Fasset has received regulatory approval from Malaysia’s Labuan Financial Services Authority (FSA) to offer digital banking services, marking a major step in its transition from a digital asset platform to a full-service, Shariah-compliant financial institution.

The approval allows Fasset to operate within Malaysia’s regulated sandbox for Islamic fintech innovations, enabling it to offer deposit-taking, lending, and investment services powered by stablecoin infrastructure. The company’s new model positions it as the world’s first stablecoin-backed Islamic digital bank, serving a global user base of over 500,000.

The license expands Fasset’s operations beyond digital asset investing into on-chain, asset-backed banking. Users will be able to access zero-interest banking products alongside investments in U.S. stocks, gold, and cryptocurrencies through the company’s all-in-one financial superapp.

Founded in 2019, Fasset serves both retail and institutional clients across 125 countries, recording $6 billion in annualized transaction volume, a figure projected to reach $24 billion by 2026.

The new approval builds on Malaysia’s ambition to position itself as a regional hub for Islamic fintech. It also strengthens Fasset’s goal of addressing the lack of access to Shariah-compliant financial products across regions where traditional banking remains limited, such as Asia and Africa.

Fasset’s upcoming offerings will include asset-backed savings products, instant cross-border payments, and a crypto debit card that can be used globally through Visa, Google Pay, and Apple Pay. The company also plans to launch Own, an Ethereum Layer 2 network built on Arbitrum to facilitate settlement of real-world assets from regulated institutions.

Fasset’s expansion comes as the global Islamic finance industry surpasses $5 trillion in assets, with projections suggesting it could double by 2030, underscoring growing demand for modern, faith-aligned financial solutions.