UBS, PostFinance, Sygnum, Raiffeisen Switzerland, Zürcher Kantonalbank, Banque Cantonale Vaudoise, and Swiss Stablecoin AG have launched a sandbox initiative to explore use cases for a Swiss franc-denominated stablecoin.
Announced Wednesday, the project will allow participating institutions to test selected stablecoin applications within a secure, live digital environment. The partners said the goal is to build practical experience in handling blockchain-based payment methods.
The sandbox is set to run in 2026, with Swiss Stablecoin AG providing the issuance infrastructure. The initiative is also open to additional banks, companies, and institutions interested in participating.
The project represents the latest effort by major Swiss lenders to examine how blockchain-based financial applications can integrate with the Swiss franc.
Previously, Bitcoin Suisse AG issued the Swiss franc-backed CryptoFranc (XCHF) as a payment token, but announced on Aug. 16, 2024, that it would discontinue the stablecoin, including both issuance and redemption.
UBS Group is the largest bank in Switzerland, with $1.7 trillion in total assets, followed by Raiffeisen Schweiz at $353 billion, Zürcher Kantonalbank at $241 billion, and PostFinance at $121 billion, according to Advratings.
Swiss banks explore blockchain-based payment methods
In September 2025, UBS, PostFinance, and Sygnum Bank completed a deposit token proof of concept under the Swiss Bankers Association, testing legally binding interbank payments on a public blockchain.
The association said the trial examined whether tokenized deposits could enable secure, programmable transactions on public blockchains while remaining compliant with Swiss financial regulations. One use case focused on payments between bank customers, while another tested an escrow-style exchange involving tokenized real-world assets.
Although the pilot confirmed the feasibility of institutional blockchain-based payments, the Swiss Bankers Association noted that scaling such systems will require further design improvements and broader collaboration with banks, regulators, and infrastructure providers.
