UBS and five major Swiss banks are testing a regulated stablecoin backed by the Swiss franc.
DeFi & Yields ·
UBS alongside Raiffeisen and four other Swiss banks have launched a live sandbox to test a Swiss franc stablecoin, according to reporting on the initiative. The project represents a regulated testing environment for a stablecoin pegged to the Swiss franc, with participation from major domestic financial institutions working within an official sandbox framework.
The sandbox program is designed to allow these banks to develop and evaluate a franc-backed stablecoin under regulatory oversight. According to reporting, the testing effort involves seven Swiss financial institutions in total and is structured to run through 2026. This approach allows the banks to assess technical functionality, operational viability, and compliance requirements in a controlled environment before any broader deployment.
The exact scope of what the sandbox will test—including transaction volumes, settlement mechanisms, and integration with existing banking infrastructure—remains to be detailed. The timeline and any specific regulatory milestones tied to the 2026 end date have not been fully specified in available reporting.