In October of 2020, Fasset Crypto exchange announced that it had entered the Bahrain Fintech Sandbox and launched the first zero commission crypto exchange, as well as was working on the first tokenization platform license from Bahrain as well. As a follow up UNLOCK recently interviewed Mr. Mohammad Raafi Hossain, Chief Executive Officer of Fasset Crypto Exchange.
Hossain had always been an academic focusing on the environment in his undergraduate and graduate studies. His passion was sustainable development and worked in the UN on these topics. As he told us, “While working with UN I noticed environmental issues related to desertification, water scarcity and others and during my work in the UAE within Prime Minister office I became exposed to technologies such as blockchain AI and others and starting to think about the intersection between alternative financing and sustainable development goals and here is where blockchain came in.”
As for the launch of Fasset exchange and tokenization platform Hossain explains, “Tokenization will one day become ubiquitous and mainstream just as blockchain and crypto will be, but for it to become a mainstream solution, it has to interact with the real world and this bridge is tokenization.”
According to Hossain tokenization has yet to be successful because of the liquidity issues, as he explains,” If I cannot move those tokens and exchange them with monetary value than it is as good as a contract on a lawyer’s desk. So at Fasset we intend to digitize assets provide incentives to different asset owners and investors to interact which include not only ability to trade these digital assets but also monetary incentives for doing so through our Fasset governance model.”
He adds, “So the tokenization platform built on Ethereum blockchain will give investors and asset owners a platform to interact and the Fasset crypto platform will usher in the masses and provide a secondary market for these tokenized assets to be exchanged.”
Fasset is proud to be part of Bahrain’ Central Bank Sandbox and is pleased that the regulator and Economic Development Board has understood and supported Fasset in both its tokenization license as well as secondary market exchange. As Hossain commented, “This hasn’t happened before to have a license for both a tokenization platform and a trading platform, and we see this as the future of tokenization projects.”
At the moment Fasset is the custodian but Hossain plans to have a third party as a custodian once they finalize testing as this will provide further assurance to the market. Hossain plans to be graduating from the Bahrain Central Bank sandbox by Q1 or Q2 of 2021.
As for why Bahrain, Hossain was quick to reply that after setting up their headquarters in UK, they chose Bahrain because it was an onshore license and this would allow them to gain a lot of know-how and wisdom. He did state however that they are interested in gaining a license in ADGM (Abu Dhabi Global Market) as they expand their licenses and operations in other countries in the region.
Hossain does not believe they are a latecomer to the crypto exchange scene as they are targeting the masses with simple way to trade, with enhanced password and wallet applications.
Fasset is now working on several asset tokenization opportunities to generate yield from. He states, “We will be launching several tokenization projects from Europe as well as the region. These are high yielding assets that are coming from international community and we are working on how to domicile foreign assets into Bahrain.”
In terms of liquidity; Fasset is well set according to Hossain, first because of the investments already made into Fasset from Family offices and investors who are veterans of the banking environment. He explains, “Our liquidity has allowed us to provide zero percent fees on our crypto exchange and it is through our tokenization platform that we will make revenues.” As such at the moment Fasset is not actively seeking investments while in the sandbox environment.