Fasset Gets Approval to Launch Stablecoin-Backed Islamic Digital Bank

Fasset, a prominent player in the digital finance space, has obtained a provisional license from Malaysia’s Labuan Financial Services Authority (FSA). This license grants the company the right to operate as what it claims is the world’s first stablecoin-powered Islamic digital bank, a move that combines the transparency of blockchain with the principles of Shariah finance. The license facilitates Fasset’s expansion into regulated Shariah-compliant financial products within a sandbox environment, emphasizing the innovation happening at the convergence of crypto markets and Islamic finance.

“We can now deliver the credibility of a global bank alongside the innovation of a fully halal fintech,” said Fasset CEO Mohammad Raafi Hossain. Islamic finance, based on strict adherence to Islamic law, prohibits interest (riba), excessive uncertainty (gharar), and investments in unethical sectors like alcohol and gambling. This new approval demonstrates a push toward developing crypto solutions that comply with these principles, catering to a vast market seeking ethical digital banking options.

Fasset expands into Islamic digital banking

The recent licensing approval enables Fasset, which already serves around 500,000 users across 125 countries, to offer a range of services including deposit-taking, cross-border remittances, and interest-free banking. The Dubai-headquartered firm aims to emulate Latin America’s success stories like Nubank but focuses on expanding access for underserved populations across Asia and Africa. Their platform offers digital savings, yield products, and opportunities to invest in U.S. stocks, gold, and cryptocurrencies.

The company also plans to introduce a crypto debit card for everyday transactions and develop “Own,” an Ethereum layer 2 solution on Arbitrum designed for settling real-world assets. Additionally, Fasset has secured licenses in heavyweights such as the United Arab Emirates, Indonesia, Turkey, and the European Union, further expanding its global footprint.

However, it’s important to clarify that the Labuan FSA license authorizes Fasset to operate within Malaysia’s offshore financial center, Labuan IBFC. It does not equate to a full digital banking license from Bank Negara Malaysia, the country’s central bank. Cointelegraph reached out for further comments but had not received a response at press time.

Stablecoins strengthen their role in global payments

Recently, stablecoins have gained significant traction in the payments sphere. Last month, Visa launched a pilot program allowing banks to pre-fund cross-border transactions utilizing Circle’s USDC and EURC stablecoins. This effort follows SWIFT’s announcement of successful testing for a blockchain-based settlement platform in collaboration with ConsenSys and over 30 financial institutions. Such developments are paving the way for faster, more efficient international payments within the evolving crypto ecosystem.

This article was originally published as Fasset Gets Approval to Launch Stablecoin-Backed Islamic Digital Bank on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.