UBS and eight other Swiss financial and payments companies have begun testing CHFD, a Swiss franc backed stablecoin designed to explore how blockchain technology can support digital payments and tokenized financial markets. The initiative brings together nine major Swiss institutions in a controlled live environment as Switzerland expands its focus on blockchain based financial infrastructure.
The consortium includes UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, BCV, SIX, TWINT and Swiss Stablecoin AG. SIX and TWINT are the latest companies to join the initiative, adding financial market infrastructure and digital payment expertise to the project.
CHFD is designed to maintain a 1:1 value with the Swiss franc, meaning one CHFD token corresponds to one Swiss franc. The stablecoin has operated technically within the sandbox since late June, while the broader Swiss franc stablecoin initiative began in April 2026.
CHFD Stablecoin Enters Live Testing
The CHFD stablecoin pilot operates inside a secure digital sandbox that allows participating institutions to test blockchain applications under realistic conditions while maintaining safeguards such as limited participation and transaction controls. The companies will use the testing phase to examine where a Swiss franc stablecoin could deliver practical benefits across financial services and digital commerce.
The participating firms will test automated transactions between financial institutions, tokenized asset settlement and programmable payments. These applications could allow financial institutions to automate certain payment and settlement processes while using blockchain networks to create faster and more transparent digital transactions.
The project also explores programmable payment applications beyond traditional financial markets. The partners will examine whether programmable payments can reduce fraud risks on online marketplaces, improve fairness in event ticket distribution and make public-sector payments more efficient.
Swiss Banks Explore Tokenized Finance
The CHFD project reflects Switzerland’s broader effort to connect its established financial sector with blockchain and tokenization. UBS and its partners are examining how a digital Swiss franc could work alongside tokenized assets and existing financial infrastructure rather than simply creating another cryptocurrency for consumers.
The initiative also highlights growing institutional interest in stablecoins as financial infrastructure. Unlike volatile cryptocurrencies, a fiat backed stablecoin such as CHFD seeks to maintain a stable value against its underlying currency, potentially making it more suitable for payments, settlements and programmable transactions.
UBS initially launched the CHF stablecoin sandbox with PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, BCV and Swiss Stablecoin AG in April. The original initiative aimed to develop practical experience with digital payment methods, improve processes and assess potential benefits for clients and Switzerland’s digital-money ecosystem.
CHFD Testing Runs Through End of 2026
The current CHFD testing phase is expected to continue until the end of 2026. UBS stressed that the sandbox does not represent a formal decision to launch CHFD commercially. Instead, the initiative will help the participating institutions assess the technical, operational and regulatory requirements that a future Swiss franc stablecoin could face.
The open ended approach gives the nine companies room to evaluate the technology before making decisions about broader adoption. The results could provide important insight into how Swiss financial institutions can use blockchain based money for payments, asset settlement and other financial applications.
With SIX and TWINT now participating, the project combines banking, financial market infrastructure and digital payments in one testing environment. If the experiments demonstrate clear advantages, the findings could influence future development of Swiss digital money infrastructure and strengthen Switzerland’s position as a hub for regulated blockchain and tokenized finance.
