A group of leading Swiss financial institutions, including UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank (ZKB), and Banque Cantonale Vaudoise (BCV), has launched a joint initiative to test a Swiss franc-backed stablecoin within a regulated sandbox environment.
The project, developed in collaboration with Swiss Stablecoin AG, aims to explore real-world applications of a CHF-denominated stablecoin while integrating blockchain-based settlement systems into Switzerland’s traditional banking infrastructure. The initiative will run throughout 2026 and is designed to assess how digital francs can improve payment efficiency, settlement processes, and cross-institutional interoperability.
📢 @UBS, @PostFinance, @sygnumofficial, @Raiffeisen_CH, @zkb_ch, @BCV – Banque Cantonale Vaudoise and Swiss Stablecoin launch joint CHF stablecoin sandbox
Stablecoins are playing an increasingly important role in the global transformation of the financial system. In this… pic.twitter.com/UBJw2SGDT5
— Sygnum Bank (@sygnumofficial) April 8, 2026
Blockchain-based digital money is a digital currency that runs on a blockchain instead of a central bank. It includes cryptocurrencies like Bitcoin and Ethereum, stablecoins like USDT and USDC, and CBDCs issued by governments. It enables fast, secure, peer-to-peer global payments, with all transactions recorded on a transparent ledger.
Banks test real-world use cases for digital Swiss Franc
The CHF stablecoin sandbox will operate as a controlled live environment, allowing participating institutions to test blockchain-based payment and settlement use cases under defined risk limits. Transactions will be confined within the participants’ ecosystem in order to analyze the performance and regulationregulatory adherence before market implementation.
Swiss Stablecoin AG will provide the technology platform for token issuance and integration of the platform into the systems of participating banks. The participating banks are collectively working on the design of first-usefirst use cases that are centeredcentred around payments and digital asset settlement, among others.
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Switzerland pushes forward in digital currency competition
This initiative has come about due to increased interest in global efforts towards the introduction of digital currencies backed by fiat currencies, as banks aim at upgrading their payment networks while increasing compatibility with blockchain networks. Stablecoins, which are commonly pegged on a 1-to-1 ratio with the value of national currencies, have become common in transactions that are fast, programmable, and highly transparent within digital networks.
Despite the growing adoption of stablecoins globally, Switzerland currently lacks a widely regulated CHF stablecoin in active circulation. The sandbox is intended to close this gap by building institutional knowledge and testing infrastructure ahead of potential future issuance.
Notably, Sygnum Bank announced a strategic partnership with BNY Mellon (NYSE: BK) to provide USD settlement services, marking the first-of-its-kind collaboration between a European digital bank and a global financial institution.
Other CHF Stablecoins Are Also Emerging
Sygnum already offers a Digital CHF product aimed primarily at institutional clients, while other companies are developing new CHF-denominated stablecoins. In June 2026, Swiss fintech firm Safirum announced plans for CHF-S, a Swiss franc-backed stablecoin designed for applications including B2B payments, treasury management, cross-border transactions and settlement of tokenized assets. Its launch was planned for the third quarter of 2026.
This growing competition means the banks’ sandbox could eventually become a test for whether traditional financial institutions can develop digital money that is competitive with products created by crypto-native and fintech companies.
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