Six Swiss banks join forces to build a unified digital franc

A consortium of six major Swiss banks joined forces with Swiss Stablecoin AG to test use cases for a Swiss franc-pegged stablecoin, the country’s largest bank UBS announced Wednesday.

UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank and BCV, alongside Swiss Stablecoin AG set up a sandbox in a coordinated push to bring blockchain-based payments into Switzerland's financial system, the statement added.

The group will run the stablecoin trial period through 2026, allowing banks and other institutions to test transactions in a live but controlled setting.

The Swiss franc-pegged stablecoin project is designed to allow participants to simulate real payment flows with limits on users and transaction volumes to manage risk.

Switzerland does not yet have a regulated Swiss franc stablecoin with broad use. The banks aim to test how such a token could support payments, improve settlement speed and connect blockchain-based applications with traditional money.

The project will focus testing payment processes and exploring how programmable money could support financial services.

The stablecoin testing period will remain open to other banks, companies and institutions, the statement noted. The group aims to gather operational experience and assess whether a full market debut of a CHF stablecoin can follow.

The Swiss stablecoin testing period follows a consortium of 12 top banks including BBVA, ING, and UniCredit teaming up to back Qivalis, a digital euro that will debut in the second half of 2026, with the primary purpose of becoming the European alternative to dominant dollar stablecoins such as Tether’s USDT and Circle’s USDC.