UBS, PostFinance, Sygnum, Raiffeisen, Zuercher Kantonalbank, Banque Cantonale Vaudoise, and Swiss Stablecoin AG today announced a joint testing phase for a stablecoin. The digital franc (CHFD) will be tested in a controlled environment throughout 2026.
The goal is to measure the technical and regulatory feasibility of a regulated CHF stablecoin. What sets this project apart is its power structure. Not decentralized networks, but a banking consortium under state oversight is driving the digital franc. Swiss Stablecoin AG provides the technical infrastructure. PostFinance has been working with the firm since February 2024 and already offers crypto services through this channel.
Deliberately, the testing phase remains small. Transactions are to stay below CHF 1 million, small enough for fintech sandbox exemptions. This places private market forces alongside the SNB's Helvetia initiative. How the central bank and the private sector explore digital franc scenarios in parallel is becoming central to Swiss financial infrastructure.
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Regulatory environment in flux
The sandbox responds to persistent legal uncertainty, not regulatory approval. FINMA published new guidelines in 2024: CHF-pegged tokens qualify as public deposits. A banking or fintech license is therefore required. In October 2025, the Federal Council opened a consultation on the Financial Institutions Act (FinIA). Two new categories are planned: payment institutions for stablecoin issuance and crypto institutions for custody. The consultation runs until February 2026. But legislative implementation is not expected before 2027.
This creates a tension. In its April 2025 position paper, the Swiss Bankers Association demands more: banks should issue stablecoins directly, without additional payment institution licenses. Swiss Stablecoin AG and the participating banks must instead operate under current rules. A payment institution license remains a prerequisite. The FinIA reform process could shift the rules in the medium term, or not. In effect, the sandbox is testing more than technology. It explores whether a middle ground between SNB centralization and decentralized stablecoins is viable.
Blockchains in banking: what works technically
This initiative builds on proven technical feasibility. In September 2025, UBS, PostFinance, and Sygnum completed the first legally binding interbank blockchain payment using deposit tokens. Blockchains are therefore of interest not only to crypto speculators but also to traditional banking processes. What currently runs through SIC-RTGS rails is gaining parallel tracks on public blockchains.
A CHF stablecoin would bring three concrete advantages: faster settlement, 24/7 availability, and compatibility with decentralized finance protocols. Yet a technical question remains open. Earlier tests ran on Ethereum. For the 2026 sandbox, no official confirmation exists on which platform will be used. Ethereum, a private DLT, or a consortium blockchain: the choice is critical and still unresolved.
A private blockchain with a restricted participant pool differs fundamentally from Ethereum. Gaps emerge in decentralization, secondary market liquidity, and international interoperability. The coming months will show whether participants prefer technological openness or bank-controlled mechanisms.
No successful franc stablecoin to date
Over the years, various fintech projects for Swiss franc stablecoins have failed. By contrast, this project enters the market directly with heavyweights. UBS is Switzerland's largest financial institution. PostFinance, ZKB, and Raiffeisen are considered systemically important. Regional banks add credibility. Also, banks bring existing client relationships, compliance infrastructure, and deposit insurance. They can offer stability that no startup can match. This pattern repeats globally: USDC from Circle grew faster than decentralized alternatives because established financial institutions stood behind it.
Still, global pressure is mounting. The EU's MiCA regulation took full effect in December 2024. It requires stablecoin issuers to maintain 1:1 backing with immediate redemption. Swiss banks must be MiCA-compliant if they expand into the EU. Switzerland is establishing its standard now, before European and international competitors dominate the market. Globally, stablecoin transactions rose to USD 33 trillion in 2025, an increase of 72% over 2024. CHF stablecoin market capitalization stood at just USD 40 million in April 2025. That amounts to 0.13% of the global market. A Swiss stablecoin would also be an answer to the country's own marginalization.
Parallel projects: Helvetia and the SNB
The sandbox runs alongside Project Helvetia, the SNB's initiative for digital central bank money. Currently, the SNB is testing two paths: a wholesale CBDC for financial institutions and a synchronized approach through the SIC-RTGS interface. Helvetia has been extended until at least mid-2027. Ethereum serves as the experimental test platform.
The SNB and the private sector are not competing. Instead, they test different paths in parallel. An SNB CBDC is positioned more as a wholesale solution for banks. A private CHF stablecoin is more likely to enable retail payments or DeFi integration. In the longer term, how these roles will be distributed remains open.
