On 20 March, Swiss crypto bank Sygnum unveiled a stablecoin pegged to the Swiss franc. Sygnum’s ‘DCHF’ “settlement token” is backed 1:1 by funds held with the Swiss National Bank.
The crypto bank aims to target institutional clients with its stablecoin, emphasizing that the coin enables fast and frictionless settlements alongside novel financial applications. The DCHF token can be used to execute smart contract payment structures—including “dividend pay-outs and other corporate actions.”
As Sygnum has held a digital asset bank license with the Swiss Financial Market Supervisory Authority (FINMA) since August 2019, the firm claims to be the first licensed bank in Switzerland to issue a stablecoin. The crypto bank accepts deposits in fiat currencies including CHF, euros, Singaporean dollars and United States Dollars—all of which can be converted into DCHF via an internet banking portal. Sygnum customers can also purchase and hold Bitcoin (BTC) and Ethereum (ETH) among other crypto assets.
