Fasset Secures Approval for Malaysia’s First Sharia-Compliant Digital Bank

Fasset has obtained preliminary approval to launch Malaysia's inaugural Sharia-compliant digital bank, backed by stablecoins. The Labuan Financial Services Authority greenlit the venture on October 7, 2025, enabling blockchain-powered asset-backed deposits, payment services, and financing solutions.

The bank will operate under a regulatory sandbox, merging Fasset's crypto super-app with traditional banking infrastructure. Its core platform will feature stablecoin-supported accounts adhering to Islamic finance principles—prohibiting interest while emphasizing risk-sharing and real-time settlements.

Labuan FSA's provisional license mandates phased testing, with full approval contingent on audit compliance and reserve attestations. This milestone positions Malaysia at the intersection of decentralized finance and Islamic banking traditions.