AllUnity, a joint venture between DWS, Galaxy, and Flow Traders, has expanded its stablecoin lineup with a new token pegged to the Swiss franc, which has emerged as a haven darling for major banks and analysts.<\/p>\n
The BaFin-regulated e-money institute has unveiled CHFAU, which is backed 1:1 by Swiss franc reserves, in response to institutional demand for regulated digital CHF for payments, settlements, and treasury operations.<\/p>\n
It debuts on the Ethereum blockchain as an ERC-20 token, with plans to expand to other networks later this year.<\/p>\n
“In response to strong demand for a compliant digital Swiss Franc, we progressed from concept to launch in a matter of months, demonstrating the strength and scalability of AllUnity\u2019s multicurrency platform,” Alexander H\u00f6ptner, CEO of AllUnity, said in a press release shared with CoinDesk.<\/p>\n
“This milestone is just the start of a broader transformation in how global liquidity moves,\u201d said.<\/p>\n
The debut is a sign of growing investor demand for stablecoins pegged to fiat currencies beyond the U.S. dollar. Last year, AllUnity debuted the EUR-stablecoin<\/a>, while several other firms have issued tokens pegged to other fiat currencies such as JPY.<\/p>\n The debut signals surging demand for stablecoins pegged to fiat currencies beyond the dollar. Last year, AllUnity launched its EUR-pegged token, joining others that have issued JPY-tied alternatives. The stablecoin market has exploded since 2020, hitting $310 billion in combined value, with dollar-pegged tokens in pole position.<\/p>\n Safe haven CHF<\/p>\n Prospects for CHF-linked assets look bright as the currency is gaining notoriety as a better haven currency than the widely popular Japanese yen.<\/p>\n A safe haven currency is a stable, liquid currency that investors seek to hold during periods of economic uncertainty, political turmoil, or market volatility to protect their capital.<\/p>\n “If you’re a fiscal basket case, markets weaken your currency and push up government bond yields. Japan and Switzerland are polar opposites: Japan is a basket case, Switzerland is a massive safe haven,” Economist Robin Brooks said on X<\/a>, echoing what Bannockburn Global Forex’s Chief Market Strategist Marc Chandler told CoinDesk last year<\/a>. <\/p>\n Investment banking giant Morgan Stanley has compared<\/a> the Swiss franc to gold, calling for a 17% appreciation against the U.S. dollar.<\/p>\n “CHF is an overlooked, under appreciated asset safe haven asset that looks set to appreciate more substantially and speedily than investors think and markets anticipate,” the bank said this week. <\/p>\n