Fasset has obtained a provisional license from Malaysia’s Labuan Financial Services Authority (FSA) to establish what it claims is the first stablecoin-powered “Islamic digital bank.”
This license permits Fasset, a comprehensive financial super app, to function within a regulated sandbox tailored for Shariah-compliant financial offerings, the company announced in a news release on Tuesday.
“We can now merge the reliability of a global banking institution with the creativity of a fintech innovator that is fully halal,” stated Fasset CEO Mohammad Raafi Hossain.
Islamic finance is based on Islamic law (Shariah), which prohibits the charging of interest (riba), avoids excessive risk and uncertainty (gharar), and disallows investments in harmful or unethical sectors like alcohol, gambling, or pornography.
Related: Colombians can soon save in stablecoins using the new MoneyGram app
Fasset expands into Islamic digital banking
The recent approval enables Fasset, serving 500,000 users across 125 nations, to provide deposit-taking services, cross-border payments, and zero-interest banking.
The Dubai-based company aims to emulate the success of NuBank in Latin America, focusing on underserved markets throughout Asia and Africa. It provides digital savings, yield products, and investment opportunities in US stocks, gold, and cryptocurrencies.
Furthermore, Fasset intends to launch a crypto debit card for everyday transactions and introduce “Own,” an Ethereum layer 2 solution built on Arbitrum for the settlement of real-world assets. The company has also acquired licenses in the United Arab Emirates, Indonesia, Turkey, and the European Union.
A license from Labuan FSA permits a financial entity to operate within the Labuan International Business and Financial Centre (IBFC), which is a regulated offshore financial hub in Malaysia. This license does not equate to a complete digital banking license from Bank Negara Malaysia.
Cointelegraph reached out to Fasset for comments, but did not receive a reply by the time of publication.
Related: SWIFT announces successful second sandbox connector tests for CBDC and more
Stablecoins gain traction in payments
Last month, Visa initiated a pilot program allowing banks to pre-fund cross-border payments using Circle’s USDC (USDC) and EURC (EURC) stablecoins.
This action followed Swift’s announcement of its partnership with Ethereum developer Consensys and over 30 financial institutions to develop a blockchain-based settlement platform aimed at facilitating 24/7 real-time cross-border payments.
Magazine: Resigning from Trump’s top crypto position was no easy feat: Bo Hines
