UBS and Five Swiss Banks Test Franc-Backed Stablecoin

A consortium led by UBS and five other Swiss banks has launched a joint initiative to test a stablecoin backed by the Swiss franc. The group, which includes PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, and Banque Cantonale Vaudoise, is partnering with Swiss Stablecoin AG to establish a secure digital live environment known as a sandbox.

Throughout 2026, the consortium will use this sandbox to explore various blockchain applications, specifically focusing on payments, interbank transfers, and the settlement of tokenized assets. The project seeks to address a gap in the current market, as no regulated Swiss franc stablecoin with broad application currently exists in the country.

Participants intend for the initiative to strengthen the digital money ecosystem in Switzerland and ensure the ongoing competitiveness of its financial center. The consortium has stated that the project remains open to other banks, businesses, and organizations interested in contributing to the design of the system.