Switzerland’s Sygnum Bank Launches CHF-Backed Stablecoin
Sygnum AG a Switzerland-based crypto-friendly bank making it easier for people to invest in the digital asset economy has announced the launch of a digital version of the Swiss franc dubbed DCHF token. The DCHF token is designed to aid the trading of securities and it will be fully backed by the corresponding amount of Swiss francs to be held by Sygnum at the Swiss National Bank (SNB), reports Swissinfo.ch.
Sygnum Unveils Digital Swiss Francs
Reportedly, the Swiss stock exchange, SIX Group, has been developing SDX, an exchange for the trading of tokenized digital assets. Sygnum is part of the consortium of firms in the SDX digital assets trading platform.
Scheduled to go live later this year, the team says the SDX digital assets trading platform is designed to offer users faster, more cost-efficient trading of shares, bonds, and a vast array of financial vehicles.
DCHF to Promote Efficiency
What’s more, Sygnum bank has hinted that its DCHF stablecoin could be used to pay investors dividends on digital company shares which will be created by smart contracts.
Commenting on the launch of the stablecoin, Mathias Imbach, co-founder of Sygnum reiterated that the new digital Swiss franc will significantly enhance the operations of the Sygnum while also boosting efficiency.
In his words:
“Trustworthy stablecoins are of great importance for the development of the digital asset ecosystem. Our DCHF digital asset creates considerable operational efficiencies and at the same time promotes the development of new business models.”
As reported by BTCManager in August 2019, Switzerland’s financial watchdog, the Swiss Financial Market Supervisory Authority (FINMA) awarded Sygnum bank and SEBA AG, a banking and securities dealers license, giving the crypto-focused firms the green light to provide financial services to professional and institutional clients alike.
“Today’s license announcement is a game-changer. By methodologically incorporating digital assets into traditional banking, and injecting much needed DLT-driven agility, Sygnum is accelerating the development of an important new asset class,” declared Luka Muller, co-founder and chairman of Sygnum AG at the time.