Swiss Banks Form 'Franc Force' to Test CHF Stablecoin—Because Even Neutral Switzerland Needs Digital Money

Six major Swiss banks have teamed up with Swiss Stablecoin AG to test a Swiss franc-pegged stablecoin, UBS announced Wednesday. UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, and BCV set up a sandbox to bring blockchain-based payments into Switzerland's financial system. The group will run the stablecoin trial through 2026, allowing banks and other institutions to test transactions in a live but controlled setting. The CHF-pegged stablecoin project is designed to let participants simulate real payment flows with limits on users and transaction volumes to manage risk. Switzerland currently lacks a regulated Swiss franc stablecoin with broad adoption. The banks aim to test how such a token could support payments, improve settlement speed, and connect blockchain-based applications with traditional money. The testing period will remain open to other banks, companies, and institutions. The group plans to gather operational experience and assess whether a full market debut of a CHF stablecoin can follow. The Swiss stablecoin testing comes after a consortium of 12 top banks including BBVA, ING, and UniCredit teamed up to back Qivalis, a digital euro launching in the second half of 2026, designed to become the European alternative to dominant dollar stablecoins like Tether's USDT and Circle's USDC.