Swiss Banking Alliance Tests Digital Franc
UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, and BCV are jointly launching a sandbox for a CHF stablecoin together with Swiss Stablecoin AG. The initiative aims to lay the foundation for a digital money ecosystem in Switzerland.
Switzerland is taking another step toward digital financial infrastructure: UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank (ZKB), Banque Cantonale Vaudoise (BCV), and Swiss Stablecoin AG have announced the launch of a so-called CHF stablecoin sandbox. The announcement was made in a joint statement on Wednesday. The goal is to test concrete use cases for a digital franc under realistic conditions.
With this move, the industry is responding to the growing importance of stablecoins in the global financial system. While numerous projects are already being advanced internationally, Switzerland has so far lacked a widely usable, regulated franc-based stablecoin.
Test environment for the digital franc
At the core of the initiative is a controlled live environment in which selected applications of a CHF stablecoin will be tested. This sandbox will make it possible to trial new forms of digital payments under realistic conditions—while maintaining clearly defined safeguards such as limited participation and transaction caps.
The technical infrastructure for issuing the stablecoin will be provided by Swiss Stablecoin AG. The sandbox is scheduled to take place in 2026.
Focus on Practical Use Cases
The participating institutions have jointly developed an initial list of potential use cases to be explored within the sandbox. The focus is particularly on improving efficiency and delivering tangible customer benefits.
Stablecoins—digital assets typically pegged 1:1 to a government-issued currency—are considered a key technology for programmable payments and automated financial processes. They combine the stability of traditional currencies with the efficiency of blockchain infrastructure.
Strengthening Switzerland’s Financial Hub
With this initiative, the partners are pursuing several strategic goals: in addition to building expertise in handling digital payment instruments, they aim in particular to strengthen Switzerland’s digital money ecosystem.
At the same time, the effort is about maintaining the international competitiveness of the Swiss financial center. Switzerland is once again positioning itself as a hub of innovation in the field of blockchain and digital assets.
Open to Additional Participants
The sandbox is designed to be open: additional banks, companies, and institutions can join the initiative and contribute their own use cases. The aim is to create as broad a foundation as possible for the development of a potential Swiss stablecoin.
The CHF stablecoin sandbox marks a coordinated push by leading financial institutions toward a digital franc. The project is still in the testing phase—but the initiative could lay the groundwork for a new generation of programmable payment methods in Switzerland.