Swiss Franc Stablecoin Pilot Takes Flight with SIX and TWINT on Board

An industry-led initiative to develop the Swiss franc-denominated stablecoin 'CHFD' has begun its pilot phase, with SIX and TWINT joining as partners, according to a statement from UBS. The test, which started in late June under a sandbox framework, aims to maintain a one-to-one peg with the Swiss franc.

Nine Swiss companies are participating in the initiative, conducting proof-of-concept tests for programmable payments and digital asset settlement. Specifically, the pilot will examine use cases including fraud reduction on online marketplaces, ensuring fair access to event tickets, and improving the efficiency of public-sector payments.

The initiative was first launched in April, and with this entry into the testing phase, efforts toward the practical implementation of stablecoins in Switzerland are set to advance further. The goal is to generate insights for the further development of Switzerland's digital money ecosystem while strengthening the country's competitiveness as a financial center.