KUALA LUMPUR, May 26 -- On the eve of the Asean-GCC Summit, Malaysia has signalled its ambition to become the world's Islamic crypto capital, with a strategic investment in Dubai-based Islamic digital bank Fasset in the works.

Kumpulan Wang Persaraan (Diperbadankan) [KWAP], Malaysia's largest public sector pension fund, is in advanced talks to invest between US$12 million and US$15 million in Fasset.

The collaboration aims to place Malaysia at the forefront of ethical digital finance and frontier technology.

Fasset, the world's first Islamic digital bank powered by blockchain and AI, is expected to relocate its Asia-Pacific headquarters to Kuala Lumpur as part of the proposed partnership.

The firm also plans to establish a Centre of E...