UBS, Eight Other Swiss Firms Start 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 a range of use cases, including automated transactions between financial institutions, settlement of tokenized assets and programmable payments.
- UBS said the sandbox is not part of a formal CHFD launch process, but rather a stage for reviewing the technical, operational and regulatory requirements needed to assess possible future adoption.
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Nine Swiss financial and payments companies, including UBS, have started a pilot test of CHFD, a stablecoin pegged to the Swiss franc.
UBS said on September 8 that it and PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, BCV, SIX, TWINT and Swiss Stablecoin AG are jointly testing CHFD use cases in a sandbox environment. SIX and TWINT joined the project for the first time.
CHFD is a stablecoin pegged one-to-one to the Swiss franc, with 1 CHFD tied to 1 Swiss franc. It has been operating in a test environment since late June. The participants plan to examine a range of use cases, including automated transactions between financial institutions, settlement of tokenized assets and programmable payments.
The test also includes 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 part of a decision process for an actual CHFD launch, but a stage to review the technical, operational and regulatory requirements needed to assess possible future adoption.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.