Fasset has received approval from Malaysia’s Labuan Financial Services Authority (Labuan FSA) to explore the development of a stablecoin-based Islamic banking model.
The move marks a key step for the Dubai-based fintech as it expands its Shariah-compliant financial offerings within regulated frameworks.
The company said the approval allows it to pilot digital financial products in a controlled environment under Labuan’s regulatory oversight.
Fasset plans to build out a platform that combines asset-backed savings, financing tools, and blockchain-based payment features, including a planned crypto debit card that would support online and in-store purchases through Visa, Google Pay, and Apple Pay, pending necessary approvals.
Fasset, which operates a digital asset platform serving users across 125 countries, reported an annualised transaction volume exceeding US$6 billion and expects this figure to reach US$24 billion by the end of 2026.
The company said its focus is on enabling Shariah-compliant, zero-interest investment and savings products, including access to assets such as gold, equities, and digital tokens.
Mohammad Raafi Hossain, CEO and Co-Founder of Fasset, said,
“We’ve been told for years what’s ‘impossible’: that Islamic finance can’t go global, that banks can’t be built on crypto, that financial freedom isn’t for emerging markets. We’re here to prove otherwise. We can now combine the credibility of a global banking institution with the innovation of a fintech insurgent that’s fully halal.
We’re on track for over $24B in volume by year-end 2026, and expect much of that to stay within our Fasset ecosystem, driving strong assets under management and opening the door to new banking services in the future.”
Fasset is also developing Own, an Ethereum Layer 2 network built on Arbitrum, aimed at settling real-world assets from regulated institutions.
The company holds licenses in several jurisdictions, including the UAE, Indonesia, the EU, Turkey, and Pakistan, and is expanding its regulatory footprint in Asia through its Malaysian operations under Labuan FSA oversight.
This article first appeared on Fintech News Malaysia.
Featured image: Edited by Fintech News Middle East, based on image by siegostuan via Freepik
