Swiss crypto bank Sygnum is launching a digital Swiss franc. The so-called stablecoin is meant to bridge digital assets and other fiat currencies.
The move represents a huge leap forward: the Swiss crypto bank, which received its license last September simultaneously with Swiss peer Seba, is launching its first stablecoin.
Sygnum's digital Swiss franc, or DCHF for short, is designed to bridge fiat currencies with digital assets, the company said in a statement on Monday. Every DCHF it issues is underpinned by a franc in legal tender with Switzerland's national bank.
Simpler, Cheaper, Faster
The currency is based on distributed ledger technology, meaning it can be transferred in real-time without an intermediary. The new, blockchain-based methods cuts complexity, time, and costs immensely.
Sygnum said DCHF is mainly meant for institutional clients as a key component of their digital assets, and one which enabled fully integrating asset tokens into a traditional banking infrastructure. Sygnum tokenization head Markus Hartmann said the DCHF is an integral part of its offering because it enables settlement and execution of transactions on smart contract payment structures.
