Swiss Banks Test Franc-Pegged Stablecoin in Controlled Environment
A consortium of nine Swiss financial and payments companies has begun testing CHFD, a digital token designed to hold a one-to-one value against the Swiss franc. The exercise, led by UBS alongside Swiss Stablecoin AG, kicked off on September 8 inside a controlled sandbox environment.
The group now includes SIX, operator of Switzerland's stock exchange and post-trade infrastructure, and TWINT, the country's widely used mobile payment app. Both joined an initiative that was originally launched in April with six banks and Swiss Stablecoin AG.
The testing covers three broad areas: automated transactions between financial institutions, settlement of tokenized digital assets, and programmable payments. The latter involves transfers that move only when predefined conditions are met.