Swiss Banks, Led by $6.1T UBS and Sygnum, Pilot CHF Stablecoin

Seven major Swiss banks — UBS, PostFinance, Sygnum, Raiffeisen, ZKB, BCV, and Swiss Stablecoin AG — are testing a CHF stablecoin in a live sandbox, one of Switzerland’s biggest digital finance collaborations.

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The sandbox will operate throughout 2026, with the participating institutions exploring selected use cases for a regulated CHF stablecoin. The initiative aims to connect blockchain applications with the Swiss franc, strengthen Switzerland's digital money ecosystem, and bolster the competitiveness of the country's financial center.

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Filling a Gap in Swiss Digital Finance

Stablecoins — digital assets typically pegged 1:1 to a national currency and transacted via blockchain networks — have grown rapidly in international importance. However, there is currently no regulated Swiss franc stablecoin with broad application in Switzerland. The new sandbox is designed to address that gap directly.

The technical infrastructure for issuing the stablecoin within the sandbox is being provided by Swiss Stablecoin AG, while the consortium of banks and institutions will jointly develop and test an initial list of potential use cases.

A sandbox, in this context, is a controlled live environment that allows participants to test new digital financial products under realistic conditions — but with clearly defined safeguards such as a limited participant pool and transaction limits. The goal is to minimize risk while gathering practical experience ahead of any future market launch.

Goals of the Initiative

The participating institutions have outlined several overarching objectives for the sandbox:

• Support the development of a Swiss ecosystem for digital money

• Build new capabilities and institutional experience in handling digital payment methods

• Gain practical insights into stablecoin operations under realistic conditions

• Deliver real benefits for clients through more efficient processes

The consortium has also signaled that the sandbox is open to other interested banks, companies, and institutions wishing to contribute to the development of a CHF stablecoin — suggesting the initiative could expand significantly over the course of the year.

Sygnum Brings Crypto-Native Expertise

Among the participants, Sygnum — widely recognized as the world's first digital asset bank — brings deep crypto-native expertise to the consortium.

The Zurich- and Singapore-headquartered firm holds a Swiss banking license and is regulated across multiple jurisdictions including Singapore, Abu Dhabi, Luxembourg, and Liechtenstein. Sygnum offers institutional-grade digital asset banking, asset management, tokenization, and B2B services.

The inclusion of both traditional banking heavyweights like UBS and Raiffeisen alongside digital-first institutions like Sygnum underscores the breadth of the collaboration — and signals that Switzerland's financial establishment is taking stablecoin infrastructure seriously.

Why It Matters

The global stablecoin market has expanded dramatically, with USD-pegged tokens like USDT and USDC dominating transaction volumes across decentralized and centralized platforms. Yet stablecoins denominated in currencies other than the US dollar remain relatively underdeveloped.

A regulated, broadly adopted CHF stablecoin could position Switzerland as a leader in non-USD stablecoin infrastructure and provide a critical building block for onchain finance in the Swiss market.

With the sandbox set to run through 2026 and an open invitation for additional participants, the initiative could lay the groundwork for a production-ready CHF stablecoin — one backed by the credibility and regulatory rigor of Switzerland's most established financial institutions.