Nine Swiss Firms Begin CHFD Stablecoin Testing as Six and TWINT Join

Key Takeaways

• Nine Swiss institutions have begun testing CHFD, a stablecoin designed to maintain a 1:1 peg with the Swiss franc (CHF).
• SIX and TWINT have joined UBS, PostFinance, Raiffeisen, Sygnum, and other firms in the sandbox initiative.
• Participants plan to test a range of use cases, including automated institutional transactions, programmable payments, and settlement of tokenized assets.

Nine Swiss financial and payments companies have begun testing the Swiss franc-pegged CHFD stablecoin in a controlled live environment. The initiative aims to explore how blockchain applications could work with Swiss franc-based payments and settlement, UBS said.

Participants include UBS, Banque Cantonale Vaudoise (BCV), PostFinance, Raiffeisen, Sygnum, Swiss Stablecoin AG, Zürcher Kantonalbank, financial market infrastructure provider SIX, and payments company TWINT. SIX and TWINT are the latest participants to join the project, which was initially announced in April with seven participants.

CHFD is a Swiss franc-pegged stablecoin, meaning one CHFD is intended to equal one CHF. The token has been technically live in the sandbox since late June.  

According to UBS, the tests are being conducted on the CHF stablecoin platform operated by CHFD Infrastruktur AG, a subsidiary of Swiss Stablecoin AG.

Swiss Institutions Test CHFD Stablecoin Use Cases

The CHF stablecoin sandbox will test several potential use cases for blockchain-based Swiss franc payments under controlled but realistic conditions.

These include automated transactions between financial institutions and settlement of tokenized assets. Participants are also examining programmable payments, where predefined rules automatically determine when and how money is transferred.

The group is also exploring whether and how programmability can help reduce fraud risks in online marketplaces, support fair access to event tickets, and make public payments more efficient.

SIX and TWINT’s involvement broadens the project beyond traditional banking.

SIX brings deep expertise in exchanges, securities settlement, custody, and institutional digital assets. TWINT adds expertise in digital payment solutions, broadening the group beyond banks and financial market infrastructure providers.

CHFD Test Does Not Guarantee Commercial Launch

The test phase is expected to continue until the end of 2026. However, the participating institutions stressed that the project remains exploratory and does not reflect a decision to commercially launch CHFD.

UBS said the initiative aims to explore where a CHF stablecoin could add value, identify its challenges, and outline the technical, operational, and regulatory requirements for its potential development. The group will share a summary of these findings once the initiative concludes.

The initiative was first announced in April, when UBS, PostFinance, Sygnum, BCV, Raiffeisen, Zürcher Kantonalbank, and Swiss Stablecoin AG said they would jointly explore use cases for a Swiss franc stablecoin.

The CHFD initiative comes as banks and payment companies worldwide focus more on blockchain-based money, stablecoins, and tokenized deposits.

In Switzerland, the project aims to determine whether a franc-based stablecoin can connect blockchain applications with existing financial and payment infrastructure without committing participants to a full-scale launch.

Get started on WEEX with a simple 40 USDT reward. Deposit 100 USDT, make your trade, and claim the bonus. 

Disclaimer: All content on The Moon Show is for informational and educational purposes only. The opinions expressed do not constitute financial advice or recommendations to buy, sell, or trade cryptocurrencies. Trading involves significant risk and may result in substantial losses. Always seek independent financial advice before making investment decisions. The Moon Show is not responsible for any financial losses or decisions made based on the information provided.

Please view the full disclaimer at: https://themoonshow.com/disclaimer