Malaysia Grants Fasset Temporary License for Stablecoin-Based Islamic Digital Bank

Dubai-based Fasset secured a provisional Islamic digital banking license from Malaysia on October 7, 2025, marking the world's first Shariah-compliant digital bank to integrate stablecoins. The Labuan FSA will oversee its pilot program for digital financial products.

"We're merging the credibility of global banking with fintech innovation—all while remaining fully halal," said CEO Mohammad Raafi Hossain, challenging perceptions about Islamic finance and crypto compatibility. Fasset’s platform, operational in 125 countries, reported $6 billion in annualized transactions, projecting $24 billion by 2026.

The bank will offer interest-free investment products tied to gold, equities, and digital tokens. Malaysia’s MOVE aligns with broader efforts to advance its digital asset ecosystem.