Pioneer Crypto Bank Launches CHF-Backed Stablecoin


Pioneer Swiss crypto-bank Sygnum unveiled a stablecoin pegged to the Swiss franc on March 20. Sygnum’s “DCHF” “Settlement Token” is backed 1: 1 by funds held with the Swiss National Bank.

According to local media Swissinfo, DCHF is under consideration to support the future SDX digital asset trading platform of SIX Group, of which Sygnum is a member.

Swiss crypto-bank announces CHF-indexed “settlement token”

The crypto-bank aims to target institutional clients with its stable coin, stressing that the coin allows for fast and frictionless settlements as well as new financial applications.

In addition to the settlements, the head of the tokenization of Sygnum, Markus Hartmann affirms that the DCHF token can be used to execute smart contract payment structures, including “dividend payouts and other corporate actions”.

Sygnum co-founder Mathias Imbach describes “trustworthy stablecoins” as “of central importance to the development of the digital asset economy,” adding that the DCHF “creates tremendous operational efficiencies and in turn promotes at the same time the development of new business models ”.

Sygnum is the first regulated bank to issue CHF-backed stable coins

As Sygnum owned a digital asset bank Licence with the Federal Financial Market Supervisory Authority (FINMA) since August 2019, the company claims to be the first authorized bank in Switzerland to issue a stablecoin.

The crypto bank accepts deposits in fiat currencies including CHF, Euro, Singapore dollar, and US dollar, all of which can be converted to DCHF through an online banking portal.

Sygnum customers can also buy and hold Bitcoin (BTC) and Ethereum (ETH) among other crypto assets.

The company also holds a Singapore Capital Markets Services License.

Competition intensifies between CHF stablecoin projects

Although it claims to be the first regulated bank to issue a Swiss stablecoin, the company is not the first to launch a crypto asset indexed to the CHF.

In 2018, Bitcoin Suisse AG founded the company Swiss Crypto Tokens to problem the first CHF backed stablecoins. Swiss crypto tokens consist of ERC-20 tokens exchangeable for fiat currency in batches of $ 1,000 and are audited monthly.

In June, the SIX scholarship demand that the Swiss central bank develops a stablecoin to increase the efficiency of regulations.