Pioneering Crypto Bank Launches CHF-Backed Stablecoin

[zendicator]

Pioneering Swiss crypto bank Sygnum unveiled a stablecoin pegged to the Swiss franc on March 20. Sygnum's ‘DCHF’ “settlement token” is backed 1:1 by funds held with the Swiss National Bank.

According to local media outlet Swissinfo, DCHF is under consideration for support from the forthcoming SDX digital assets trading platform from SIX Group — of which Sygnum is a member.

Swiss crypto bank announces CHF-pegged “settlement token”
The crypto bank aims to target institutional clients with its stablecoin, emphasizing that the coin enables fast and frictionless settlements alongside novel financial applications.

In addition to settlements, Sygnum’s Head of Tokenization Markus Hartmann asserts that the DCHF token can be used to execute smart contract payment structures — including “dividend pay-outs and other corporate actions.”

Sygnum co-founder Mathias Imbach describes “trustworthy stablecoins" as being "of central importance for the development of the digital asset economy,” adding that the DCHF “creates considerable operational efficiencies and at the same time promotes the development of new business models.”

Sygnum is first regulated bank to issue CHF-backed stablecoins
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.

The firm also holds a capital markets services license in Singapore.

Competition heats up among CHF stablecoin projects
Despite claiming the title of the first regulated bank to issue a Swiss stablecoin, the firm is not the first to launch a CHF-pegged crypto asset.

In 2018, Bitcoin Suisse AG founded the Swiss Crypto Tokens corporation to issue the first CHF-backed stablecoins. The Swiss Crypto Tokens comprise ERC-20 tokens that are redeemable for fiat currency in batches of $1,000 and are audited monthly.

In June, SIX stock exchange requested that the Swiss central bank develop a stablecoin to increase the efficiency of settlements.

Source: https://cointelegraph.com/news/pioneering-crypto-bank-launches-chf-backed-stablecoin

[Fenix]

After the sensational discussion of the emergence of a stable Libra coin from Facebook, the states began to actively work on the creation of their national stable coins, and this question arose with renewed vigor during the spread of coronavirus, when paper money became its real carrier for a certain time. Therefore, in the near future we will observe the appearance of ever new stable coins of various states. These stable coins of the states will create additional conveniences in the use of their currency and will have an overall positive effect on the decentralized cryptocurrency. In the future, various joint forms of their use will appear.

[Bobcrypto]

Yes,  we are gonna experience another era of stablecoin cryptocurrency after corona virus problem is over or in the near future. I actually beleive that the proposed facebook libra project popularity has open the way for stablecoin crypto development and will futher boost crypto adoption worldwide.