6 Swiss Banks Launch Swiss Franc (CHF) Stablecoin Sandbox

Six Swiss banks have joined forces with Swiss Stablecoin AG to test a Swiss franc-pegged stablecoin. UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, and BCV announced the initiative on April 8.

The sandbox runs on Ethereum using ERC-20 and will operate throughout 2026.

No Regulated CHF Stablecoin Exists Yet

Stablecoins have grown rapidly in international importance, but the market remains dominated by USD-pegged tokens like USDT and USDC. Switzerland currently lacks a regulated Swiss franc stablecoin with broad application. The sandbox aims to address that gap.

The participating institutions will test selected use cases in a controlled live environment with defined safeguards, including transaction limits and a restricted participant pool. Swiss Stablecoin AG provides the technical infrastructure for issuing the stablecoin.

Two Systemically Important Banks Involved

The consortium includes two of Switzerland’s four systemically important banks: UBS and the Raiffeisen Group. The combination of traditional banking institutions like UBS and Raiffeisen alongside digital-first players like Sygnum signals that Switzerland’s financial establishment is taking stablecoin infrastructure seriously.

Several participants are not new to tokenized finance. UBS, BCV, Raiffeisen Switzerland, and Zürcher Kantonalbank already participated in the Swiss National Bank’s Project Helvetia pilot, which tested wholesale CBDC on six Digital Exchange for settlement. The new sandbox is a private stablecoin test rather than a central bank project, but the operational experience carries over.

Stablecoin Sandbox Open to Additional Participants

The sandbox remains open to other interested banks, companies, and institutions. This positions the project as a framework that could expand rather than a closed pilot. The focus is on building a Swiss ecosystem for digital money, developing capabilities in digital payments, and gaining practical insights for the industry.

The initiative follows similar efforts in Europe. A consortium of 12 banks, including BBVA, ING, and UniCredit, announced Qivalis, a digital euro stablecoin set to launch in the second half of 2026. A separate group of 10 banks, including Bank of America, Deutsche Bank, Goldman Sachs, and UBS, is also exploring stablecoin issuance.

What This Means for Switzerland

The sandbox represents Switzerland’s largest multi-bank collaboration on digital finance infrastructure. While MiCA-compliant Swiss franc stablecoins like AllUnity’s CHFAU already exist, the Swiss banking consortium aims at the institutional settlement layer.

The test runs through 2026. A sandbox interim report is expected in the second half of the year. For the broader market, access terms and specific use cases remain undisclosed. For banks and tokenization platforms watching the Swiss stablecoin infrastructure, this is the first multi-bank live test of its kind in the country.