Fassethas received preliminary license approval to establish the first stablecoin-based and fully sharia-compliant digital bank in Malaysia. The approval dated October 7, 2025 makes it possible to provide asset-backed deposit, current account, payment and financing services within Blockchain. The regulatory framework will proceed with a sandbox model under the supervision of the Labuan Financial Services Authority (Labuan FSA) and will bring the company’s cryptocurrency-focused super application to the banking layer.
Scope of License Approval
According to license approval, Fasset offers account and payment products that comply with sharia principles. stablecoin It will run on a supported core banking architecture. The asset-based reserve structure will be supported by controls such as keeping the unit of account stable, transfers with instant reconciliation, and regular reporting of custody/reserve evidence. Thus, the interest prohibition and risk sharing principles of Islamic finance and the Blockchain payment infrastructure will be brought together at the same point.
Labuan FSA sandbox The authorization allows pilot products to be tested with a limited user base and scaled under supervision. Provisional license status requires that the roadmap to full operating authorization proceed with testing, inspection and reporting thresholds. Thus, consumer protection and transparency metrics are strengthened while operational risks are measured.
Regional Effects of the Decision
Southeast Asia offers a natural scale for stablecoin-based banking due to its high Islamic finance penetration and cross-border payment traffic. Fasset’s cryptocurrency servicesThe move to expand from to full-scope banking aims to signal institutional confidence to the market with a regulation-friendly model. Its initial positioning can encourage early adoption on both the individual and corporate side.
The payment, savings and financing modules included in the plan can create cost and speed advantages in segments such as exporting SMEs, crypto native users and migrant worker money transfers. Regular proof of reserves and independent verification reports will be the main anchor of trust building in the stablecoin ecosystem. As progress is made in the authorization process, testing results in Labuan and the metrics to be reported will determine the pace of market expansion.
