The Swiss Bankers Association (SBA), the umbrella organisation of banks in Switzerland, presented an in-depth paper on a Swiss franc stablecoin in Zurich on 29 October 2026. It is calling for a framework that would allow this Swiss stablecoin to be issued from Switzerland, directly under a banking licence. A regulated issuer in Germany has already been offering a franc-linked token since February 2026.
The paper was presented by Martin Hess, chief economist of the SBA, and Natalie Graf, the association's senior legal counsel, according to the report by finews.ch on 29 October 2026. A Swiss franc stablecoin would be a digital token on a blockchain, whose value is linked to the franc and backed by reserves.
What is the Swiss Bankers Association asking for?
The SBA is targeting the preliminary draft revision of the Financial Institutions Act (FinIA), through which the Federal Council wants to create a dedicated regime for stablecoins. It welcomes the initiative but is calling for several changes, which it already put forward during the consultation in February.
- Issuing under the existing banking licence. The preliminary draft would require a bank to set up a separate subsidiary, authorised as a payment instrument institution. Natalie Graf considers this point particularly objectionable. "Regulation must also work in practice," the association insists.
- More flexible reserves. The Swiss capital market offers few highly liquid short-term investments. According to the SBA, this could hinder viable business models.
- Internationally coordinated anti-money laundering rules. Swiss practice in principle requires all holders to be identified, by the issuer or a supervised intermediary. The preliminary draft provides for a more risk-based solution.
The stated aim comes down to three points. Swiss authorities would directly supervise issuers. Holders' rights would be easier to enforce. Added value and technological know-how would stay in the country.
Why the association wants to move quickly
For the SBA, the competition has already staked its position. Allunity, a company regulated in Germany, launched a stablecoin linked to the Swiss franc in February 2026, called CHFAU. "The point of no return has been reached," Martin Hess said, according to finews.ch: stablecoins will not go away.
The question, in his view, is now where they are issued. "We believe there will be a Swiss franc stablecoin in the future," he said. What remains to be seen is whether the financial centre will issue it itself or leave this market to foreign players.
The global market remains almost entirely denominated in dollars. The Financial Stability Board (FSB), which coordinates the financial regulators of the G20, estimated it at 300 billion dollars in mid-2026, 99% backed by the dollar, as 2clics.com reported on 25 October 2026. Tether's USDT and Circle's USDC alone totalled 255 billion dollars as of 21 October 2026, according to the data site DefiLlama.
United States, European Union, Switzerland: where do the rules stand?
The SBA notes that the European Union and the United States already have specific legal bases, whereas Switzerland is still working on one. The articles published by 2clics.com in October 2026 make it possible to place each framework.
| Jurisdiction | Framework | Status as of 29 October 2026 |
|---|---|---|
| United States | GENIUS Act, signed on 18 July 2025 | First final rule published on 21 October 2026 by the Office of the Comptroller of the Currency (OCC), the federal banking regulator. Compliance required by 18 January 2027. The issuer may not pay interest. |
| European Union | MiCA Regulation on markets in crypto-assets | Authorisation granted by a national authority, then passporting to the countries of the European Economic Area, of which Switzerland is not a member. |
| Switzerland | No dedicated stablecoin regime | Case-by-case FINMA practice since 11 September 2019. FinIA revision at the preliminary draft stage. |
What does Swiss law already allow?
In the absence of a specific law, the Swiss Financial Market Supervisory Authority (FINMA) applies existing law. Its approach is set out in a supplement to its guidelines on initial coin offerings, published on 11 September 2019. It assesses a token according to its economic function, under the principle of "same risks, same rules".
Depending on the backing assets and the holder's rights, a stablecoin may fall under the Anti-Money Laundering Act, the Banking Act or the Financial Market Infrastructure Act (FMIA). In 2019, FINMA took the example of the Geneva-based Libra project. It would have required a payment system licence, with requirements on capital, liquidity and reserve management.
The Fintech licence, another existing route, has its limits. It caps public deposits at 100 million francs, which can be neither invested nor bear interest.
On the ground, trials have begun. UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank and Banque Cantonale Vaudoise are testing use cases with SIX, the operator of the Swiss stock exchange infrastructure, the payment app Twint and the company Swiss Stablecoin. According to the SBA, this "sandbox" has been running since September in a protected digital environment. Its results are expected in December.
The industry's interest still exceeds what is on offer. According to the Swiss Blockchain Survey 2026 by the University of St. Gallen, 80% of the 25 institutions in Switzerland and Liechtenstein surveyed see stablecoins and central bank digital currencies as the major trend of the next three to five years. Only 20% already offered stablecoin or settlement services. And 46% cited regulatory requirements among the obstacles.
What risks does the SBA itself quantify?
The association does not present the stablecoin as risk-free. If customers move large sums from their accounts into stablecoins, banks could struggle to refinance loans and mortgages. Swiss banks rely heavily on their customers' deposits.
To gauge what is at stake, the paper distinguishes three orders of magnitude of issuance:
- up to 500 million francs, current supervisory structures should suffice;
- above 5 billion francs, a stablecoin could become an important part of the financial infrastructure;
- at around 20 billion francs, full institutional integration would be necessary.
These are SBA estimates, not thresholds set by law. The association also points to a risk specific to the franc as a safe-haven currency: in times of crisis, demand for Swiss franc stablecoins could surge. Finally, it mentions a "run", when many holders demand redemption at the same time and put the issuer's reserves under pressure.
The KOF Swiss Economic Institute at ETH Zurich has also examined the future of the franc in the face of stablecoins and tokenised deposits.
Who would make money from a Swiss franc stablecoin?
According to the SBA, issuance itself would bring in little, given the low level of interest rates in Switzerland. The contrast with the dollar is stark. Tether and Circle invest their reserves largely in US Treasury bills, which earns them several billion dollars in interest a year, according to a 2clics.com article of 22 October 2026.
In Switzerland, the policy rate of the Swiss National Bank (SNB) stood at 0% as of 21 October 2026. SARON, the rate for secured overnight lending between banks, was −0.05% on 20 October 2026. Reserves invested short term in francs therefore yield little.
The revenue banks expect would instead come from fees: transactions, custody, foreign exchange and the conversion of conventional money into digital currency. For a company using them, these are all costs to compare with those of current payments.
What would a stablecoin be used for by a Swiss company?
The SBA first cites cross-border payments, which could do without several intermediary correspondent banks. International groups could also manage their liquidity more efficiently. Another avenue: payments along a supply chain, triggered automatically by smart contracts.
Swiss private bank Maerki Baumann sees the same uses on the corporate side. "Stablecoins are gaining importance for companies, particularly in payment transactions and liquidity management," says Marcel Spalinger, head of Tech Banking at the bank, quoted by finews.ch on 29 October 2026.
Above all, the bank highlights the questions to be settled before any use, which outline the limits:
- how to acquire stablecoins and store them securely;
- what real advantage they offer over existing payment solutions;
- which accounting, tax and regulatory requirements apply;
- how to integrate them into payment processes already in place.
These uses concern stablecoins linked to currencies such as the dollar. For a company that keeps its accounts in francs, the only franc-linked token cited by the SBA comes from a company regulated in Germany.
The bank's Tech Banking team, under the Archip by Maerki Baumann brand, will discuss the topic at a workshop on 19 November 2026, from 15:15 to 16:45, at the Hallenstadion in Zurich. The workshop is part of the Digital Economy Award and is aimed at chief financial officers and treasury managers. Participation is free of charge.
What we do not know yet
- The timetable for the FinIA revision: the sources do not say when the Federal Council will submit a bill to Parliament.
- Whether banks will be granted the right to issue under their current licence, and whether the rules on reserves will be relaxed.
- The results of the banks' sandbox, expected in December.
- The volume of Allunity's CHFAU in circulation, which the source does not give.
- The details of the SBA paper: only the press report was consulted.
This article does not constitute investment advice.
Sources
- finews.ch, "Franken-Stablecoin: Bankiervereinigung macht Druck", 29 October 2026.
- finews.ch, "Stablecoins: Privatbank zeigt, was Unternehmen jetzt wissen müssen", 29 October 2026.
- 2clics.com, "Stablecoins: the Financial Stability Board relies on private data", 25 October 2026.
- 2clics.com, "Stablecoins: 891 billion transferred, first GENIUS Act rule", 22 October 2026.
- 2clics.com, "FINMA crypto authorisation: which licence for which activity?", 23 October 2026.
- 2clics.com, "BingX obtains its MiCA licence in Austria and targets 29 EEA countries", 16 October 2026.
- 2clics.com, "Policy rate and savings: how it weighs on interest", 25 October 2026.
