Six Swiss banks are joining forces to test possible use cases for a stablecoin pegged to the Swiss franc. There is currently no regulated variant with broad application in Switzerland. The initiative aims to change that.
UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank and BCV are launching a controlled testing environment this year — a so-called sandbox — together with Swiss Stablecoin AG. The goal is to explore how blockchain applications can be connected to the Swiss franc and strengthen Switzerland's position as a digital financial centre. Together, the participating institutions manage more than CHF 2.7 trillion in assets, giving the initiative weight beyond the symbolic.
Stablecoins are digital assets whose value is pegged 1:1 to a currency — in this case the Swiss franc. They combine price stability with the efficiency of digital technology, enabling fast, transparent and programmable payments. Unlike other cryptocurrencies, their value fluctuations are minimal, making them better suited as a means of payment in the financial sector.
There is currently no regulated Swiss franc stablecoin with broad application in the country. The initiative addresses this by testing concrete use cases in a controlled environment with a limited pool of participants and transaction limits. The sandbox is also open to other banks, companies and institutions wishing to contribute to the development.
Stablecoins have grown sharply in recent years, but the market is dominated by Tether, registered in El Salvador. Banks view this with mixed sentiment — some see stablecoins as competitors, others as an opportunity to put the technology to work within their own businesses. A group of ten European banks, including ING, UniCredit, BNP Paribas, Danske Bank and Sweden's SEB, last year formed a company to launch a euro-pegged stablecoin in the second half of 2026.
An important backdrop is that President Donald Trump last year signed legislation establishing clear rules for stablecoins in the United States. This has increased pressure on European and Swiss players to find their footing in the market for digital payments. A separate group of ten banks — including Bank of America, Deutsche Bank, Goldman Sachs and UBS — has also announced that it is jointly exploring stablecoin issuance.
The technical infrastructure for issuing the stablecoin is provided by Swiss Stablecoin AG. The sandbox will run during 2026, with use cases developed jointly by the participants. The focus is on more efficient processes and tangible benefits for clients — not merely technological exploration.
