UBS, Eight Other Swiss Firms Begin Pilot Test of Swiss Franc Stablecoin CHFD
Summary
- UBS and eight other Swiss financial and payments companies said they have begun a pilot test of CHFD, a stablecoin pegged to the Swiss franc (CHF).
- The participants said they plan to test CHFD use cases including automated transactions between financial institutions, settlement of tokenized assets and programmable payments.
- UBS said the sandbox is not part of a process for an actual CHFD launch, but a stage for reviewing the technical, operational and regulatory requirements for possible future adoption.
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Nine Swiss financial and payments companies, including UBS, have begun a pilot test of CHFD, a stablecoin pegged to the Swiss franc.
UBS said on September 8 that it is jointly testing CHFD use cases in a sandbox environment with PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, BCV, SIX, TWINT and Swiss Stablecoin AG. SIX and TWINT are new participants in the project.
CHFD is a stablecoin pegged one-to-one to the Swiss franc and has been operating in a test environment since late June. The participants plan to test a range of use cases, including automated transactions between financial institutions, settlement of tokenized assets and programmable payments.
The test will also examine ways to reduce fraud risks in online commerce, support the fair distribution of event tickets and improve the efficiency of public-fund disbursements.
The pilot is scheduled to run through the end of this year. UBS said the sandbox is not a step toward deciding whether to launch CHFD, but a stage for reviewing the technical, operational and regulatory requirements for possible future adoption.
