UBS and eight other Swiss financial firms have launched a pilot to test CHFD, a stablecoin backed by the Swiss franc (CHF). The initiative is designed to evaluate how a regulated, CHF-denominated stablecoin can be used for digital payments, settlements, and other blockchain-based financial applications.

The testing marks another step in Switzerland's broader effort to expand the use of tokenized assets within its financial system. The country's regulatory foundation for such projects was strengthened by the Blockchain Act, which took effect in 2021 and established a legal framework for digital assets, and the Swiss National Bank has separately explored wholesale central bank digital currency settlement through its Project Helvetia pilots with the SIX Digital Exchange. The CHFD pilot also reflects growing interest among traditional financial institutions in stablecoin technology, coming as major economies advance their own regulated stablecoin legislation.

NEW: UBS and eight other Swiss firms begin testing CHFD, a Swiss franc-backed stablecoin. pic.twitter.com/HaYCjxWTOB

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Focus on Digital Payments and Tokenization

The CHFD stablecoin is intended to support faster and more efficient financial transactions while maintaining the stability of the Swiss franc, one of the world's most widely held reserve currencies. By using blockchain technology, the participating firms aim to explore real-time settlement, improved payment efficiency, and broader applications in tokenized finance.

Fiat-backed stablecoins are digital tokens designed to maintain a stable value by being pegged to a traditional currency and holding corresponding reserves. Banks and other financial institutions around the world have been increasingly testing such instruments as they seek to modernize financial infrastructure without sacrificing regulatory compliance. In Switzerland, this work has taken place alongside a wider national push toward blockchain adoption, supported by the country's established framework for digital asset regulation.

The pilot could help shape future digital payment solutions in Switzerland, and its outcomes may offer a reference point for other banks weighing similar CHF- or fiat-denominated token projects.

Switzerland Advances Stablecoin Innovation

The CHFD trial highlights the growing role of traditional banks in developing blockchain-based financial products. As financial institutions continue experimenting with tokenization and digital currencies, projects like CHFD could pave the way for wider adoption of regulated stablecoins. Market participants will be watching the results of the pilot, whether participation expands beyond the initial nine firms, and how the findings feed into Switzerland's broader tokenized-asset ecosystem.