Swiss CHFD stablecoin sandbox enters testing with SIX, TWINT

Nine Swiss companies have begun sandbox tests of CHFD, a Swiss franc stablecoin, and financial market operator SIX and payment app TWINT joined the initiative, according to a press release shared Tuesday. The pilot follows the initiative’s launch in April.

The test program will explore programmable payments-transactions that execute automatically when predefined conditions are met-and digital asset settlement within a controlled environment.

Developers and financial firms will test whether programmable payments can reduce fraud on online marketplaces, promote fair access to event tickets and increase efficiency in public payments. Digital asset settlement tests will assess whether CHFD can be used to settle tokenized securities and other digital assets.

Participants include banks and fintech firms; the press release did not list all companies. SIX operates key Swiss financial market infrastructure, while TWINT is a widely used Swiss mobile payments app. Banks already in the initiative will work with the new participants to run end-to-end tests covering issuance, transfer and settlement of CHFD inside the sandbox.

Organizers will evaluate technical performance, transaction finality, the integration of CHFD with existing payment and market infrastructure, and any effects on user processes in marketplaces and ticketing platforms.

According to the press release, organizers aim to use the pilot’s results to inform discussions among market participants and regulators about practical applications and potential operational requirements for a Swiss franc stablecoin.