Why Swiss Banks Are Suddenly Testing a Digital Franc — And What It Means for Citizens

Key Takeaways

Swiss banks successfully tested a digital franc deposit token in 2025.

The token enables fast, programmable payments using blockchain technology.

Switzerland remains focused on wholesale CBDC, with no retail digital franc yet.

Swiss banks have completed a proof-of-concept for a “deposit token,” a regulated digital version of the Swiss franc designed for blockchain-based payments.

While the Swiss National Bank (SNB) continues exploring wholesale central bank digital currency (CBDC) for institutional use, the deposit token reflects a bank-led effort to keep digital money within the regulated banking system.

Announced in September 2025 by the Swiss Bankers Association (SBA) alongside PostFinance, Sygnum Bank and UBS, the project marked the first time major institutions executed legally binding cross-bank payments using tokenized deposits on a public blockchain.

As financial markets move toward tokenized assets, traditional payment systems face limitations in speed and settlement.

Swiss banks see the deposit token as the missing “cash leg” for a DLT-based ecosystem.

Programmable money that can trigger automatic payments via smart contracts while remaining backed 1:1 by traditional bank deposits and protected by existing regulations.

The PoC tested two real-world scenarios:

First, payments between customers of different participating banks.

Second, an automated escrow-like exchange in which deposit tokens were swapped for tokenized assets.

Transactions are settled efficiently on a public blockchain while complying with anti-money laundering rules, depositor protection, and Swiss law.

Results confirmed technical feasibility, legal validity, and seamless integration with existing banking infrastructure.

PostFinance’s Head of Digital Assets, Alexander Thoma, noted the technology makes payments “more efficient and secure for all parties.”

The goal of the testing phase was to bring blockchain advantages, speed, transparency, and programmability to everyday Swiss banking customers without forcing a leap into unregulated crypto.

For most Swiss citizens, the deposit token is unlikely to replace cash or everyday banking apps anytime soon. However, it could gradually reshape how people use money.

For example, payments could become much faster and more flexible.

This includes near-instant peer-to-peer transfers, smoother e-commerce checkouts and lower-cost micro-payments, such as pay-per-use streaming or IoT services.

At the same time, smart contracts could automate routine transactions.

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Rent payments, car purchases and other agreements could settle automatically with built-in delivery-versus-payment, reducing counterparty risk.

As tokenized assets become more common—such as fractional ownership of bonds, real estate or art—users could buy and sell them directly through their bank accounts.

These transactions would settle on the same platform, making the process more seamless. This could also lower barriers for retail investors and small businesses.

Importantly, deposits would remain within the regulated banking system, preserving Switzerland’s standards for depositor protection and privacy.

Programmable features could also support automated processes such as dividend payments or machine-to-machine transactions.

There are still potential downsides. Like other digital payment systems, this model introduces cybersecurity risks and requires stronger user awareness.

However, because the token is issued by banks rather than the central bank, it may avoid some of the privacy concerns linked to retail CBDCs.

Overall, the shift could lead to a more efficient and competitive financial system, while maintaining the stability traditionally associated with the Swiss franc.

Switzerland’s journey toward a digital franc has been deliberate and measured, focused primarily on wholesale rather than retail applications.

Early explorations began in the late 2010s as tokenized assets gained traction.

In 2021, the SNB joined the BIS Innovation Hub and Banque de France for Project Jura, successfully testing cross-border wholesale CBDC transfers between French and Swiss banks on a shared distributed ledger.

The flagship effort, Project Helvetia, launched in phases.

Phase I and II (with the BIS) proved the technical and operational feasibility of settling tokenized assets using wholesale CBDC.

Phase III, starting December 2023 with UBS and other major banks on SIX Digital Exchange (SDX), moved into live production.

The SNB issued real wholesale CBDC to settle tokenized bonds worth hundreds of millions of francs. 

Cantons such as Zurich and Basel-Stadt, as well as cities such as Lugano, participated in the testing phase.

The pilot demonstrated secure, efficient settlement of commercial transactions on a regulated third-party platform—the first of its kind globally.

The successful deposit token PoC signals Switzerland’s intent to lead in tokenized finance without upending its stable, privacy-focused banking model.

Further development, potentially broader bank participation, and expanded use cases are expected in 2026. 

For citizens, this could mean a frictionless blend of traditional banking reliability and blockchain efficiency, keeping the Swiss franc competitive in a digital world.

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