UBS Group has partnered with PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, Banque Cantonale Vaudoise, and Swiss Stablecoin AG to launch a sandbox testing various use cases for a Swiss franc stablecoin in Switzerland. Announced on July 22, the initiative lets participating banks trial selected stablecoin scenarios in a secure digital live environment, building hands-on experience with digital payment methods. The sandbox is scheduled to run throughout 2026.
Participants and Infrastructure
Swiss Stablecoin AG will provide the issuance infrastructure. The project is open to other banks, companies, and institutions that wish to join. Combined assets of the participating lenders are substantial: UBS Group holds $1.7 trillion, Raiffeisen Schweiz $353 billion, Zürcher Kantonalbank $241 billion, and PostFinance $121 billion, according to Advratings data. Previously, Bitcoin Suisse AG developed and issued a Swiss franc stablecoin called CryptoFranc (XCHF), but it was discontinued in 2024.
Swiss Blockchain Payment Developments
Switzerland has seen growing activity around blockchain-based payment systems. Last year, UBS, PostFinance, and Sygnum Bank completed a test of legally binding interbank payments under the Swiss Bankers Association (SBA). That trial examined whether tokenized deposits could support secure, programmable transactions on public blockchains while complying with Swiss financial regulations, covering payments between bank customers and escrow-like exchanges involving tokenized real-world assets. The tests confirmed the “feasibility” of institutional blockchain payments, though the SBA noted that “additional design adjustments” would still be needed.