UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, Banque Cantonale Vaudoise and Swiss Stablecoin AG have launched a sandbox to test exploit cases for the Swiss franc stablecoin in Switzerland.
Announced on Wednesday, the initiative will allow participating banks to test selected fanc stablecoin exploit cases in what the partners described as a secure live digital environment, or sandbox. According to the group, the project aims to gain experience in using digital payment methods.
The sandbox will be carried out in 2026, and the issuance infrastructure will be provided by Swiss Stablecoin AG. Other banks, companies and institutions that want to take part in it can also take part in the project.
The project is the latest effort by major Swiss lenders to test how blockchain-based financial applications can connect to the Swiss franc.
Bitcoin Suisse AG previously issued the Swiss franc-based cryptocurrency CryptoFranc (XCHF), which it described as a payment token. But Bitcoin Suisse announced on August 16, 2024, to discontinue stablecoin production, including its issuance and redemption.
UBS Group is the largest Swiss bank with total assets of $1.7 trillion, followed by Raiffeisen Schweiz with $353 billion, Zürcher Kantonalbank with $241 billion and PostFinance with $121 billion. According to to Advratings data.
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Swiss banks are exploring blockchain-based payment methods
In September 2025, UBS, PostFinance and Sygnum Bank completed a proof-of-concept deposit token with the Swiss Bankers Association, which tested legally binding interbank payments on a public blockchain.
The Swiss Bankers Association said the process examined whether tokenized deposits could support secure, programmable transactions on public blockchains while remaining compliant with Swiss financial regulations. One exploit case involved payments between bank customers, while another tested a deposit-like exchange involving tokenized real-world assets.
While the test confirmed the “feasibility” of institutional blockchain payments, the SBA noted that scaling these payments would require “additional design adjustments” and broader collaboration with other banks, authorities and infrastructure providers.
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