UBS and Swiss Financial Firms Begin Testing Swiss Franc Stablecoin

Highlights:

• UBS and eight other Swiss firms have started testing real-world uses for a Swiss franc stablecoin.
• SIX and TWINT joined the sandbox, which is testing payments, tokenized assets and programmable transactions.
• The trial will run through this year, with no decision yet on a public stablecoin launch.

A group of major Swiss financial companies has started testing how a Swiss franc stablecoin could be used in real-world payments and digital finance. SIX and TWINT have also joined the project, bringing the total number of participants to nine. UBS announced the new testing phase on September 8. The project now includes UBS, PostFinance, Sygnum, SIX, Raiffeisen, Zürcher Kantonalbank, Banque Cantonale Vaudoise, TWINT and Swiss Stablecoin AG.

The companies are testing the technology inside a controlled sandbox environment. The aim is to see how a digital token linked to the Swiss franc could work in practical financial transactions without opening the system to the wider public. The project uses CHFD, a stablecoin designed to maintain a one-to-one value with the Swiss franc. In other words, one CHFD is intended to represent one Swiss franc. The token has been technically available inside the sandbox since the end of June.

Switzerland’s CHF stablecoin sandbox has officially entered its testing phase.

Nine Swiss companies are now testing how a Swiss franc stablecoin could work in real-world financial applications, with SIX and TWINT joining UBS, PostFinance, Sygnum and others.

The tests include… pic.twitter.com/cTKP5YB6ZM

— CryptoSavingExpert ® (@CryptoSavingExp) September 8, 2026

Swiss Firms Explore Payments and Tokenized Transactions

Participants are exploring several possible uses for the Swiss franc stablecoin. One area involves automated payments between financial institutions. The group is also testing settlement for tokenized assets, where traditional assets are represented digitally on a blockchain.

Programmable payments are another part of the trial. These transactions can be designed to complete automatically once certain conditions are met. The companies are also looking at more practical uses outside traditional banking. According to UBS, the technology could potentially help reduce fraud risks on online marketplaces. Other test cases include fairer access to event tickets and more efficient payments from public authorities.

SIX and TWINT bring additional experience to the project. SIX operates major financial market infrastructure in Switzerland, while TWINT is widely used for digital payments. Their involvement broadens the project as the participants move from early development into active testing.

Tests Will Continue Until the End of 2026

The sandbox is expected to remain active until the end of 2026. However, the companies have not decided to launch a Swiss franc stablecoin for public use. For now, the project remains a test designed to identify possible benefits, technical challenges and regulatory issues.

The sandbox also has limits in place. Only selected participants can use the system, while transaction restrictions are designed to keep the testing environment controlled. UBS said the project will help the companies understand where a CHF-backed digital asset could provide real value and where further work may be needed.

Swiss Stablecoin Project Enters a More Practical Stage

The initiative was first announced in April by UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, Banque Cantonale Vaudoise and Swiss Stablecoin AG. At that stage, the focus was mainly on exploring whether blockchain technology could support new types of Swiss franc payments.

The project has now moved into a more practical phase. With CHFD running inside the sandbox and new partners joining the tests, the participants can begin examining how the technology performs in realistic financial situations. The companies plan to review the results once the sandbox period ends. Those findings could help determine whether a Swiss franc stablecoin has a broader role in Switzerland’s future digital payment system.