Stablecoin in francs: the project enters the operational phase

Context

In brief

• Nine Swiss partners are testing CHFD, a stablecoin pegged to the franc
• Operational phase from late June 2025, will last until end of 2026
• Testing on automated transactions, fraud prevention, fair access to tickets
• Objective: strengthen competitiveness of the Swiss financial centre

Key facts

• What: CHFD, stablecoin in francs with 1:1 ratio
• When: Technical activation at end of June 2025, testing until end of 2026
• Who: UBS, PostFinance, Sygnum, Raiffeisen, cantonal banks of Zurich and Vaud, Swiss Stablecoin, SIX, Twint
• Where: Switzerland
• Initiative: Launched in April 2025
• Duration of experimentation: Until end of 2026
• Exchange ratio: 1 CHFD = 1 Swiss franc

Nine Swiss financial institutions have officially entered the operational testing phase for CHFD, a stablecoin (digital currency) pegged to the Swiss franc. The project, launched in April 2025, reached its first technical milestone at the end of June with the official activation of the digital currency. Testing takes place in a protected digital environment, called a 'sandbox', where partners can experiment with concrete uses of the digital currency without exposing the real financial system to risks.

The nine partners involved represent the historic core of Swiss finance: universal banks such as UBS and PostFinance, the Sygnum institute specializing in digital currencies, the Raiffeisen group, the cantonal banks of Zurich and Vaud, Swiss Stablecoin, as well as SIX and Twint, two key infrastructures of Swiss payments. A grouping that reflects the desire of the national financial system to develop its own expertise in the field of sovereign digital currencies.

What is CHFD and how does it work

CHFD is designed to maintain a parity ratio (1:1) with the Swiss franc. In theory, one unit of CHFD should be worth exactly one franc, except for ordinary market fluctuations or for systemic and operational risks external to its structure. This stability is the characteristic that distinguishes stablecoins from other cryptocurrencies, such as Bitcoin, whose price can fluctuate significantly in short periods of time.

The main utility of a stablecoin in francs, according to what emerges from the tests, lies in the ability to combine the advantages of blockchain technology — speed, transparency, programmability — with the stability of traditional Swiss currency. Blockchain is a shared ledger technology that enables fast and verifiable transactions.

The tests and intended uses

During the experimentation phase until the end of 2026, partners are not limited to replicating uses already established internationally, such as automated transactions between financial institutions. The focus of the research is on more innovative applications that could add value to the Swiss market. Among these, the project is exploring how to reduce the risk of fraud in online markets by leveraging the programmability of blockchain. Another area of experimentation is to ensure fair and transparent access to event tickets, avoiding scalping through smart contracts. In addition, public fund payments are being tested: the use of CHFD for money transfers to public administrations could make the system faster and more traceable.

The initiative, according to the joint statement issued by the partners, aims to gather valuable knowledge for the development of the Swiss digital money ecosystem. A second stated objective is to strengthen the competitiveness of the Swiss financial centre in an international context where the issue of sovereign digital currencies is already on the agenda for many countries.

After the tests: what happens next?

The experimentation phase will continue until the end of December 2026 and remains open to any possible outcome. The partners do not formally commit to future commercial development of the stablecoin: rather, the testing period aims to identify in which areas CHFD could create real added value, what technical and operational challenges still exist, and what regulatory requirements should be met to possibly proceed beyond the pilot phase.

Operational details

Stablecoins in the Swiss context

Switzerland does not come to this experimentation as a beginner. In 2022, the City of Lugano has already started a collaboration with Tether for the Plan B project, an initiative that develops concrete uses of Bitcoin, blockchain and decentralized technologies in the Ticino territory. In Lugano, Bitcoin, Tether and LVGA can be used for purchases in numerous businesses participating in the project. The CHFD initiative therefore continues on a path already traced: testing how digital currencies can be integrated into local and national economic ecosystems.

Concrete opportunities for the financial system

Programmability is a crucial feature that distinguishes blockchain stablecoins from traditional money. A digital franc linked to the blockchain's distributed ledger could make it possible to automate complex payments. For example, a cascading refund for an e-commerce transaction could be triggered automatically if the customer does not receive the goods within a set timeframe, without the need for manual banking intermediation. Similarly, anti-fraud control could be performed in real time by publicly verifiable scripts, reducing disputes and increasing trust between parties.

In the area of public payments — taxes, levies, contributions — a stablecoin in francs could shorten reconciliation times and reduce transaction errors.

Key points

Timeline and Next Steps

The CHFD pilot phase will continue until the end of December 2026. This timeframe of approximately 18-20 months from technical activation (end of June 2025) allows the nine partners to gather robust data on real-world use, transaction volumes, user behavior, and emerging technical issues. The window is wide enough to identify critical scenarios and validate the proposed operational models.

How to Stay Informed and Participate

For Swiss citizens and businesses interested in CHFD project developments, the first step is to consult official communications from partner institutions: UBS, PostFinance, SIX, and Twint publish regular updates on their corporate platforms and communication channels. For an overview of digital innovation in the Swiss financial sector, it's useful to follow communications from the Swiss National Bank (SNB) and the State Secretariat for Economic Affairs (SECO), which oversee federal government policy on these topics.

Currently, testing is taking place in a sandbox environment, so it is not yet possible for the general public to access or purchase CHFD with real money. However, financial institutions may open doors to selected beta-testers in the coming months of testing. Swiss banks — particularly the nine partners — will communicate any participation opportunities through their customer channels and public announcements.

What Will Change for the Average Swiss Digital Wallet

If CHFD successfully passes the pilot phase and receives regulatory approval, citizens and businesses residing in Switzerland could end up with a fourth option for money beyond physical francs (banknotes and coins), francs in bank accounts, and digital francs already in circulation. At that point, it could become common practice to pay for certain services — online purchases, event tickets, cantonal taxes — directly in CHFD through digital wallets compatible with blockchain.

However, this scenario remains prospective. Final approval will depend on results actually achieved during the sandbox, regulatory decisions by SNB and FINMA, and a risk-benefit assessment conducted by federal monetary and financial policy leaders.

Tools and Resources for Further Exploration

Those who wish to deepen their understanding of digital financial innovation and the Swiss monetary system can benefit from specific tools:

Monitoring your federal, cantonal, and municipal tax burden is essential before making investment or money management decisions in light of a potential shift toward new digital tools. Use the calculator to verify your personal tax position and understand how regulatory changes could affect it.

The strength of the Swiss franc relative to the euro and other currencies influences both cross-border payments and prospects for digital currency adoption. Check exchange rates to understand the current monetary context and implications for those operating internationally.

If you want to explore options for innovative banks that may offer digital currency services in the future, compare Swiss bank accounts currently available. Many institutions involved in the CHFD project are already preparing their infrastructure for future stablecoin support.

The CHFD testing over the next 18 months represents an important piece of Switzerland's strategy to keep its financial center competitive globally. Staying informed about the progress of this project means anticipating how the national monetary system could evolve over the coming years, to the benefit of those living and working in the country.

Source: rsi.ch