UBS Tests Swiss Franc-Pegged Stablecoin in Controlled Environment

UBS, one of Switzerland's largest banks, is testing a Swiss franc-pegged stablecoin called CHFD in a controlled live environment. The bank and eight other financial and technology companies started testing the token in June, with SIX and TWINT joining the initiative in September.

The tests are being conducted through a sandbox operated by CHFD Infrastruktur AG, a subsidiary of Swiss Stablecoin AG. Participants are using the environment to test how a CHF-denominated stablecoin could be used in financial and payment transactions.

The focus is on programmable payments, which involve automated transactions between financial institutions and the settlement of tokenized digital assets. The tests also include programmable payment applications for online marketplaces, event ticket distribution, and the disbursement of public funds.

The testing phase will continue through the end of 2026, with no fixed outcome or commercial launch attached to the initiative. The sandbox is intended to help participants identify where a CHF stablecoin could provide practical benefits and address technical, operational, and regulatory requirements.