UBS has partnered with PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, Banque Cantonale Vaudoise, and Swiss Stablecoin AG to launch a sandbox to test various use cases for a Swiss franc stablecoin in Switzerland.

According to the Wednesday announcement, the initiative will allow participating banks to test selected stablecoin use cases in a secure digital live environment. The banks will use the sandbox to build experience in handling digital payment methods. The sandbox is slated to be conducted throughout 2026.

Swiss Stablecoin AG will provide the issuance infrastructure, and the project is also open to other banks, companies, and institutions that want to participate.

Bitcoin Suisse AG has previously developed and issued a Swiss franc stablecoin dubbed the CryptoFranc, or XCHF. However, the stablecoin was discontinued in 2024.

The sandbox brings together some of the largest lenders in Switzerland. UBS Group is the largest among them with $1.7 trillion in total assets. Meanwhile, Raiffeisen Schweiz holds $353 billion, while Zürcher Kantonalbank has $241 billion, and PostFinance holds $121 billion, according to data provided by Advratings.

There’s been a lot of activity around blockchain-based payment systems in Switzerland.

Last year, UBS, PostFinance and Sygnum Bank completed testing of legally binding interbank payments under the Swiss Bankers Association.

As previously reported by Coin Insider Daily, the trial tested whether tokenized deposits could support secure, programmable transactions on public blockchains while remaining compliant with Swiss financial rules, including use cases covering payments between bank customers and escrow-like exchanges involving tokenized real-world assets.

The tests confirmed the “feasibility” of institutional blockchain payments; however, the SBA noted that “additional design adjustments” would still be required.