Fasset has received a provisional license from Malaysia’s Labuan Financial Services Authority to launch the first stablecoin-powered Islamic digital bank. The license allows Fasset to operate within a regulated sandbox focused on Shariah-compliant financial products. Islamic finance prohibits interest and investment in harmful industries like alcohol and gambling.

Fasset, an all-in-one financial super app, can now offer deposit-taking services, cross-border payments, and zero-interest banking to its 500,000 users across 125 countries. The Dubai-headquartered firm aims to replicate the success of NuBank in Latin America for underserved markets in Asia and Africa, offering digital savings, yield products, and investment access to various assets.

Fasset plans to issue a crypto debit card for everyday spending and launch “Own,” an Ethereum layer 2 for settling real-world assets. The firm has also received licenses in the UAE, Indonesia, Turkey, and the EU. The Labuan FSA license authorizes financial entities to operate within the Labuan International Business and Financial Centre in Malaysia, but it’s not a full digital banking license.

Stablecoins are gaining momentum in payments, with Visa launching a pilot program for cross-border payments using Circle’s USDC and EURC stablecoins. Swift also announced a collaboration with Consensys and over 30 financial institutions to build a blockchain-based settlement platform for real-time cross-border payments, following the trend of utilizing stablecoins in the financial sector.

Read more at Cointelegraph: Fasset Approved to Launch Stablecoin-Powered Islamic Digital Bank