Swiss financial institutions begin testing CHFD stablecoin

A consortium of nine Swiss financial institutions has entered the testing phase for the CHFD stablecoin, a digital asset pegged 1:1 to the Swiss franc. The initiative has expanded to include SIX, the provider of Switzerland’s financial market infrastructure, and the mobile payment app TWINT.

Participants in the testing sandbox include UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank (ZKB), Banque Cantonale Vaudoise (BCV), and Swiss Stablecoin AG. The project aims to explore various blockchain-based applications, such as automated transactions between financial institutions, the settlement of digital assets, and programmable payments.

Specific use cases being investigated include using programmable payments to reduce fraud on online marketplaces, ensuring fairer access to event tickets, and increasing the efficiency of public-sector payouts. The testing phase is expected to continue through the end of 2026 to evaluate technical, operational, and regulatory requirements for potential future market implementation.