Nine Swiss firms including UBS begin CHF stablecoin sandbox test

Nine Swiss financial and payments companies, including UBS, PostFinance, Sygnum and Raiffeisen, have begun sandbox testing for the use of a Swiss franc-pegged stablecoin, with SIX and TWINT joining recently. The test uses CHFD, a Swiss franc stablecoin pegged one-to-one with the CHF that has been operating since late June. Participants are assessing potential uses for programmable payments, including automated interbank transactions, tokenized-asset settlement, online commerce fraud prevention, ticket transactions and public fund disbursements. The testing is set to continue through the end of 2026, and a decision on whether to launch an actual CHF stablecoin has not yet been made.