UBS Leads Live Testing of Swiss Franc Stablecoin with SIX, TWINT

A Swiss industry initiative has entered its live testing phase for a stablecoin pegged to the Swiss franc. The CHFD stablecoin, which has been technically live in a sandbox environment since late June, is designed to maintain a 1:1 peg to the Swiss franc.

The initiative aims to generate insights for further development of Switzerland's digital money ecosystem and strengthen its financial centre's competitiveness. SIX and TWINT have joined UBS as partners for the testing phase.

The banks involved in this project, including PostFinance, Sygnum, Raiffeisen, ZKB, and BCV, initially formed a partnership in April to test potential uses of a franc-pegged stablecoin in Switzerland. This comes as the growing stablecoin industry and wider cryptocurrency growth prompt lenders to explore blockchain technology within their own businesses.