The CHFD stablecoin has officially entered its formal testing phase after Swiss financial market infrastructure provider SIX and mobile payments platform TWINT joined the initiative, expanding participation to nine Swiss institutions.
The project, which has been operating in a controlled sandbox environment since late June, is designed to test a digital asset pegged one-to-one with the Swiss franc. Participants include UBS, PostFinance, Sygnum, Raiffeisen, Zurich Cantonal Bank, Banque Cantonale Vaudoise, SIX, TWINT, and Swiss Stablecoin AG. During the testing phase, one CHFD is intended to equal one Swiss franc.
The initiative remains experimental and does not represent a decision to launch a public stablecoin or offer the token to retail users.
Focus on Institutional Settlement and Programmable Payments
The testing program extends beyond simple transfers and will evaluate automated transactions, tokenized asset settlement, and programmable payment systems. Participants aim to explore how blockchain-based money can improve efficiency in financial markets by enabling the simultaneous transfer of digital assets and payments.
The project will also examine practical applications in e-commerce, ticketing, and public-sector payments. These tests will assess whether programmable payment conditions can reduce fraud, improve event ticket distribution, and streamline public fund disbursements.
SIX and TWINT Expand the Initiative’s Scope
SIX brings expertise in digital securities, custody, and market infrastructure. Through its SIX Digital Exchange platform, more than CHF 2 billion worth of digital securities have already been issued, making it a significant contributor to the project’s institutional settlement ambitions.
TWINT, Switzerland’s leading mobile payment platform, adds a consumer payments perspective to the initiative. While there are currently no plans to integrate CHFD into the TWINT app, its involvement broadens the project’s focus beyond banking and securities markets.
A Controlled Sandbox Environment
The CHFD sandbox was initially launched in April 2026 by six major Swiss banks and Swiss Stablecoin AG. The environment operates under strict controls, including limited participants and transaction caps, to reduce financial and operational risks.
The stablecoin is not publicly available, has no exchange listing, and has not released reserve attestations or circulation figures. Retail customers cannot currently buy, redeem, or transfer CHFD.
Testing Through 2026
Participants expect testing to continue through the end of 2026, after which they plan to publish a summary of findings. The results will help determine whether a Swiss franc-backed stablecoin can provide practical benefits and what regulatory, technical, and operational challenges must be addressed before any broader rollout is considered.
For now, CHFD remains a closed pilot project focused on evaluating the future role of stablecoins in Switzerland’s financial and payment infrastructure.
