UBS, Post Finance, Other Partner for Swiss Franc Stablecoin Sandbox
UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, Banque Cantonale Vaudoise and Swiss Stablecoin AG launched a sandbox to test the use cases of the Swiss franc stablecoin in Switzerland.
The initiative, announced on Wednesday, will allow participating banks to test selected fanc stablecoin use cases in what the partners describe as a secure digital live environment, or sandbox. The team said the project aims to build expertise in handling digital payment methods.
The sandbox will take place in 2026, with Switzerland's Stablecoin AG providing the demonstration infrastructure. The project is open to other banks, companies and institutions that want to participate.
The project represents the latest effort by major Swiss lenders to test how blockchain-based financial applications can interact with the Swiss franc.
Bitcoin Suisse AG has previously launched the Swiss Franc-based CryptoFranc, or XCHF, which it describes as a payment token. But Bitcoin Switzerland has announced that it will cease to be a stablecoin on August 16, 2024, including releases and redemptions.
UBS Group is the largest Swiss bank with total assets of $1.7 trillion, followed by Raiffeisen Schweiz with $353 billion, Zurcher Kantonalbank with $241 billion and Post Finance with $121 billion, according to data from Advertising.
Related: Cardano can now be used to pay at 137 Spar stores across Switzerland.
Swiss banks are investigating blockchain-based payment methods
In September 2025, UBS, PostFinance and Sygnum Bank completed the Proof of Deposit token under the Swiss Bankers Association, which tested legally binding interbank payments on a public blockchain.
The Swiss Bankers' Association says the trial will comply with Swiss financial regulations and test whether it can support secure and programmable transactions on public blockchains. One use case covered payments between bank customers, while another tested an escrow-like exchange involving real-world assets.
While the test proved the “feasibility” of institutional blockchain payments, the SBA noted that balancing these payments would require “further design adjustments” and extensive collaboration with other banks, authorities and infrastructure providers.
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