Fasset: Pioneering the First Fully Shariah-Compliant Digital Bank Using Stablecoins

 In a landmark development for Islamic finance and fintech, Fasset has secured approval from Malaysian regulators to become the first digital bank fully compliant with Shariah law and operational with stablecoins. Granted a temporary banking license by the Labuan Financial Services Authority (FSA), the company can now offer digital banking services in a regulated financial sandbox aligned strictly with Islamic banking principles. 

Already serving more than 500,000 users in 125 countries, Fasset has seen rapid growth in its institutional client base and transaction volumes. During 2025, the company recorded over USD 6 billion in transaction volume—figures expected to surge to USD 24 billion by the end of 2026. The new license allows Fasset to broaden its offerings to include deposit services and zero-interest banking products under Shariah rules. 

Fasset’s expansion is underpinned by existing permissions in multiple jurisdictions such as the UAE, Indonesia, the European Union, Turkey, and Pakistan, among others. These approvals enable the firm to deliver a diverse suite of Shariah-compliant financial services, including secured lending and yield-generating assets designed according to Islamic finance norms. 

A core part of Fasset’s strategy is the upcoming launch of its Own platform— a blockchain infrastructure built as a Layer-2 solution on top of Ethereum’s Arbitrum. This system is intended to facilitate transactions involving tokenized real-world assets (RWAs) issued by regulated financial institutions, ensuring settlement efficiency and compliance. 

Highlighted by its co-founder and CEO, Mohammad Raafi Hossain, Fasset’s initiative dispels common skepticism around Islamic finance intersecting with cryptocurrencies. He emphasizes that such financial solutions can scale globally, serve emerging markets, and deliver financial freedom. With stablecoins at its core, the company claims to be blazing a trail by creating the first digital bank that’s both Shariah-compliant and crypto-innovative. 

In terms of industry context, Islamic finance has been growing rapidly; assets in the sector surpassed USD 5 trillion in 2025 and are projected to double by 2030. Despite this, access to compliant financial services remains limited in many Muslim-majority countries. Fasset’s entry into this market with regulated stablecoin banking could drastically expand access and inclusion. 

By combining stablecoin infrastructure with Shariah law principles, Fasset is modeling a new paradigm: one where digital finance is not only innovative but also ethically aligned. The move marks a major step in financial inclusion, offering Muslims around the world more transparent, permissible, and technologically advanced banking options. The world will be watching closely as Fasset actualizes this vision.