Swiss banks to test possible uses for Swiss franc stablecoin

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April 8, 2026 2:28 AM EDT

The new 20 Swiss Franc note is pictured during a presentation of the Swiss National Bank (SNB) in Bern, Switzerland May 10, 2017. REUTERS/Denis Balibouse

ZURICH, April 8 (Reuters) - Six ‌Swiss banks have ​joined ​forces to test potential uses for a Swiss franc-pegged stablecoin in Switzerland, UBS said on Wednesday, as lenders grapple with ‌the growing stablecoin industry and the wider growth of cryptocurrencies.

Jointly with ⁠the company Swiss Stablecoin AG, the Swiss banks are launching a secure digital live ‌environment, a so-called sandbox, to ‌explore ways to connect blockchain applications with the Swiss franc, the UBS statement added.

UBS, PostFinance, Sygnum, Raiffeisen, ZKB and BCV are part of ​the initiative, which is also open to other banks.

There is currently no regulated Swiss franc-pegged stablecoin with broad application in Switzerland, UBS said. ⁠The sandbox will be conducted in 2026 and aims to strengthen the Swiss digital money ecosystem, ​the bank added.

BANKS WORLDWIDE LOOKING AT STABLECOINS

Stablecoins - a type of cryptocurrency designed to maintain a constant value and backed by ​traditional currencies - are seen by some lenders ‌as potential competitors, putting them under pressure to find uses for blockchain technology within their own businesses.

Banks worldwide are ⁠experimenting with stablecoins, and several have joined forces to trial the technology, especially since U.S. President Donald Trump last year signed a law establishing rules for ⁠stablecoins.

A group of 10 European banks, including ING, UniCredit and BNP Paribas, last year formed ​a company to launch a euro-pegged stablecoin in the second half of 2026, in a move they hope will counter U.S. dominance in digital payments.

Also last year, a ‌separate group of 10 banks, including Bank of America, Deutsche Bank, Goldman Sachs and UBS, said that they ‌are jointly exploring issuing a stablecoin.

Stablecoins have grown sharply in recent years, but ⁠the market is dominated by ‌El Salvador-based company Tether, ​and demand for the few bank-issued stablecoins has so far been limited.

(Reporting by Ariane Luthi; Editing by Linda Pasquini and ‌David Holmes)


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