UBS said the Swiss franc stablecoin sandbox has entered its testing phase, with market infrastructure operator SIX and payments company TWINT joining a controlled trial built around the Swiss franc digital stablecoin CHFD.

The sandbox is designed to verify specific use cases for a Swiss franc stablecoin in a protected digital environment. UBS said the arrangement includes safeguards such as limits on who can participate and on transaction amounts during the test phase.

The testing is based on CHFD, described in the announcement as a Swiss franc digital stablecoin. The platform used for the testing is operated by CHFD Infrastruktur AG, a subsidiary of Swiss Stablecoin AG.

Alongside UBS, the existing participants named in the announcement are PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, Vaudoise Bank and Swiss Stablecoin AG. The addition of SIX and TWINT broadens the group beyond banks to include core market infrastructure and payments firms.

UBS also stressed that the sandbox remains an experimental setup. The bank said the start of testing should not be read as a commitment to a future formal issuance of a Swiss franc stablecoin, leaving the final structure, rollout model and any production decision undisclosed.

Why It Matters

This update matters because it shows Swiss financial institutions are testing stablecoin infrastructure through a consortium-style model that includes banks, payments companies and market infrastructure providers. That makes the effort more relevant than a narrow technical pilot, particularly for questions around how tokenized money could move across payment and settlement systems.

It also underlines a broader industry pattern: regulated institutions are exploring fiat-backed digital money through controlled pilots rather than immediate public launches. In that framework, the presence of SIX and TWINT suggests that practical integration with existing financial rails may be as important as the token itself.