Pioneering Swiss crypto bank Sygnum unveiled a stablecoin pegged to the Swiss franc on March 20. Sygnum'southward 'DCHF' "settlement token" is backed ane:one by funds held with the Swiss National Bank.

According to local media outlet Swissinfo, DCHF is under consideration for support from the forthcoming SDX digital avails trading platform from SIX Grouping — of which Sygnum is a member.

Swiss crypto depository financial institution announces CHF-pegged "settlement token"

The crypto bank aims to target institutional clients with its stablecoin, emphasizing that the coin enables fast and frictionless settlements alongside novel financial applications.

In addition to settlements, Sygnum'due south Head of Tokenization Markus Hartmann asserts that the DCHF token tin be used to execute smart contract payment structures — including "dividend pay-outs and other corporate actions."

Sygnum co-founder Mathias Imbach describes "trustworthy stablecoins" every bit being "of central importance for the development of the digital nugget economy," adding that the DCHF "creates considerable operational efficiencies and at the aforementioned time promotes the development of new business models."

Sygnum is starting time regulated bank to upshot CHF-backed stablecoins

Every bit Sygnum has held a digital asset depository financial institution license with the Swiss Financial Market Supervisory Dominance (FINMA) since August 2022, the firm claims to be the first licensed bank in Switzerland to issue a stablecoin.

The crypto bank accepts deposits in fiat currencies including CHF, euros, Singaporean dollars and United States Dollars — all of which can be converted into DCHF via an internet banking portal.

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

The house also holds a capital markets services license in Singapore.

Competition heats up among CHF stablecoin projects

Despite claiming the title of the outset regulated bank to issue a Swiss stablecoin, the house is not the first to launch a CHF-pegged crypto nugget.

In 2022, Bitcoin Suisse AG founded the Swiss Crypto Tokens corporation to upshot the first CHF-backed stablecoins. The Swiss Crypto Tokens incorporate ERC-20 tokens that are redeemable for fiat currency in batches of $one,000 and are audited monthly.

In June, SIX stock commutation requested that the Swiss central banking concern develop a stablecoin to increase the efficiency of settlements.