Fasset partners MBSB to explore blockchain-powered Shariah-compliant banking solutions in Malaysia

16 views 8:30 am 0 Comments April 22, 2024

United Arab Emirates (UAE)’s digital asset infrastructure provider Fasset has inked deal with Malaysian lender Malaysia Building Society Berhad (MBSB) to explore blockchain-powered Shariah-compliant banking solutions in Malaysia.

The duo said in a statement on Monday that they have signed a letter of intent at the KL20 Summit on Monday.

According to the statement, the partnership marks Fasset’s entry into Malaysia later this year, after successful launches in Indonesia and the UAE.

It will open doors to innovative digital asset solutions for hundreds of thousands of MBSB Group customers across the country, as well as enable MBSB Group to cater to the needs of a diverse consumer segment through a variety of digital asset classes.

The partnership also sees the two companies collaborating to innovate offerings through an online banking platform with a fully regulated digital asset investment proposition.

Users will be able to buy, sell or swap digital assets in a secure blockchain-backed environment.

The available investment options will include tokenized gold, equities, sukuk and rahnu.

This creates an opportunity for Malaysian customers to diversify their investment portfolio in a user-friendly and simplified manner.

Customers can also earn additional profit on their portfolio through staking, uniquely available through digital assets.

In addition, customers can achieve a granular level of diversification through bundling, which may not be easily accomplished in a traditional portfolio.

“At MBSB, we recognize the transformative power of technology in the banking sector,

“Our exploratory engagement with Fasset is a testament of our commitment to innovation and adaptability in a rapidly evolving market,” said Wan Kamaruzaman Bin Wan Ahmad, Chairman of MBSB.

According to him, this initiative represents a significant step towards discovering how Shariah-compliant blockchain technologies can not only enhance our service offerings but also redefine them.

“We are eager to uncover the full potential of these technologies to better serve customers,” he added

Meanwhile, Fasset Chief Executive Officer Mohammad Raafi Hossain commented that at Fasset, they are committed to empowering the next billion people to build and manage their wealth.

“With the blockchain technology underlying our solution, we can do this in a secure, transparent, and innovative way,

“We are honored to have MBSB as our partner in Malaysia and are excited to offer digital assets investment and money management solutions to their users,” he added.

Fasset is a fintech firm founded by Mohammad Raafi Hossain and Daniel Ahmed. The firm has raised a total of $26.7 million in funding

According to the statement, Fasset closely collaborates with corporate entities such as telcos, digital banks, wallet providers, wealth managers, fintechs, and asset managers, which extends the company’s reach and helps catalyze industry-wide digital transformation.

In 2023, Fasset launched an embedded digital asset exchange in a telco app, available to over 100 million users in Indonesia, by partnering with Indosat Ooredoo Hutchison.

It has also partnered with Mastercard to offer a crypto card to users in the region.

The firm has accumulated a large digital assets licensing portfolio in emerging markets, connecting places like Malaysia, Indonesia, UAE, Bangladesh, Pakistan and Türkiye.

In Malaysia, Fasset is currently licensed by the Labuan Financial Services Authority and is in process to receive a mainland RMO DAX license through the Securities Commission Malaysia.

In addition to the upcoming launch in Malaysia, the company plans to further expand its operations in the region and beyond.

MBSB is the parent entity to MBSB Bank Berhad (MBSB Bank) and Malaysian Industrial Development Finance Berhad (MIDF), overseeing their strategic direction and expansion of
market presence by delivering innovative and comprehensive financial products and services across consumer, commercial, corporate and investment banking segments.

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