The Crypto Firms Collaborating on a Swiss Franc Stablecoin

Stablecoins, digital tokens pegged one-to-one to the Swiss franc in this case, are a prime example.

SEBA Bank and Sygnum Bank, the two B2B players that hold banking licenses from the Swiss Financial Market Supervisory Authority and that specialize in digital assets, are both involved in stablecoin explorations, as is the country's respected crypto conglomerate, Bitcoin Suisse.

"Within the Crypto Valley and here in Switzerland, there's a very good collaboration going on, where everyone's working together to try to design a Swiss franc stablecoin which has more or less the same definition or is fully interoperable," said Matthew Alexander, SEBA Bank's head of asset tokenization.

It appears that's what's happening among Swiss stablecoin issuers.

The Swiss also see the advantage in avoiding the kind of separate and competing currency pairs that have emerged with USD stablecoins like tether and USDC. Swiss stablecoins.

Sygnum, which works in partnership with telco giant Swisscom, recently claimed the world's first e-commerce transaction using a bank-issued stablecoin, the Sygnum Digital Swiss Franc.

"To the clients, it's a new way to transfer assets via a blockchain and this requires some disruption, and disruption is easier if you not only compete but also team up on certain aspects. We think that there will probably be multiple stablecoins for multiple purposes, but agree that you don't need 200 stablecoins with a Swiss franc common denominator."

The firm's Swiss Crypto Tokens AG subsidiary was the first of the three to come out with a Swiss franc stablecoin, the CryptoFranc.

"Within the Swiss crypto industry, we are in frequent discussion with partners and other stablecoin issuers to see what cooperation and new use cases may make sense for the XCHF and how we can further adoption of cryptocurrencies in general," said Armin Schmid, CEO of Swiss Crypto Tokens.

An attempt to implement a stablecoin such as tether or USDC within a core banking system would not work, simply because such systems are not capable of handling a four-character currency unit, Salm pointed out.