Works Starts on a CHF Stablecoin

With the rest of the world (slowly) seeking to eat into the dollar’s absolute dominance of the stablecoin market, a group of Swiss institutions have come together to create a ‘sandbox’ to test use cases for a Swiss franc stablecoin.

Noting that “Stablecoins are gaining international importance and play a significant role in transforming the financial system”, the group, made up of UBS, PostFinance, Sygnum, Raiffeisen, ZKB and BCV, together with Swiss Stablecoin AG, have started work towards the creation of a regulated Swiss franc stablecoin with broad application in Switzerland.

The first stage is testing selected use cases for a CHF stablecoin in a secure digital live environment – the ‘sandbox’, and the participating companies say they are pursuing several overarching goals with the initiative, including supporting the development of a Swiss ecosystem for digital money, building new capabilities and experience in handling digital payment methods, and gaining practical insights. “The focus is on more efficient processes and delivering real benefits for clients,” they state.

The sandbox is based on an initial list of potential use cases that are being developed jointly and will be conducted throughout 2026. The group say it is open to other interested parties, wishing to contribute to a CHF stablecoin. The technical infrastructure for issuing the stablecoin is provided by Swiss Stablecoin AG.

In 2025, a group of European banks formed a consortium to test and release a EUR stablecoin, this is due to be issued in the second half of this year.