UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, Banque Cantonale Vaudoise and Swiss Stablecoin AG have launched a sandbox to test use cases for a Swiss franc stablecoin in Switzerland.
Announced on Wednesday, the initiative will allow participating banks to test selected fanc stablecoin use cases in what the partners described as a secure digital live environment or sandbox. The group said the project is intended to build experience in handling digital payment methods.
The sandbox will be conducted in 2026, with Swiss Stablecoin AG providing the issuance infrastructure. The project is also open to other banks, companies and institutions that want to take part.
The project marks the latest effort by major Swiss lenders to test how blockchain-based financial applications can connect to the Swiss franc.
Bitcoin Suisse AG previously issued the Swiss franc-based CryptoFranc, or XCHF, which it described as a payment token. But Bitcoin Suisse announced on Aug. 16, 2024, that it would discontinue the stablecoin, including issuance and redemption.
The largest Swiss banks by total assets, in USD, billion. Source: Advratings.
UBS Group is the largest Swiss bank with $1.7 trillion in total assets, followed by Raiffeisen Schweiz with $353 billion, Zürcher Kantonalbank with $241 billion and PostFinance with $121 billion, according to data from Advratings.
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Swiss banks explore blockchain-based payment methods
In September 2025, UBS, PostFinance and Sygnum Bank completed a deposit token proof of concept under the Swiss Bankers Association, which tested legally binding interbank payments on a public blockchain.
The Swiss Bankers Association said the trial tested whether tokenized deposits could support secure, programmable transactions on public blockchains while remaining compliant with Swiss financial rules. One use case covered payments between bank customers, while another tested an escrow-like exchange involving tokenized real-world assets.
While the test confirmed the “feasibility” of institutional blockchain payments, the SBA noted that scaling these payments requires “additional design adjustments” and broader cooperation with other banks, authorities and infrastructure providers.
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