UBS and Major Swiss Banks to Test Swiss Franc Stablecoin

UBS and five other major banks in Switzerland will be sandboxing a franc-based stablecoin.

A total of six banks in Switzerland have partnered to test potential use cases for a Swiss franc stablecoin, Reuters reported, citing banking giant UBS.

Per the announcement, the banks are going to launch a secure digital live environment – also known as a sandbox – to explore ways to connect blockchain-based applications with the Swiss franc.

The institutions, part of the initiative, are UBS, PostFinance, Sygnum, Raiffeisen, ZKB, and BCV.

According to the official press release from UBS,

The new initiative will test potential use cases for a CHF stablecoin in Switzerland. In doing so, the partners are exploring ways to connect blockchain applications with the Swiss franc, aiming to strengthen both the Swiss digital money ecosystem and the competitiveness of Switzerland’s financial center.