Sygnum Bank Launches Digital Swiss Franc Token

For all DCHF stablecoins issued by Sygnum, it will hold the equivalent amount in Swiss currency as collateral in the Swiss National Bank (SNB).

By facilitating the settlement of real-time transactions, Sygnum’s tokenization solution reduces the complexity, costs, time and counterparty risks associated with digital asset tradings, allowing businesses to raise new capital by producing asset tokens based on existing financial assets. According to the Swiss bank, the DCHF also provides for the execution of smart contract payment structures, such as dividend payouts and other corporate actions.

Sygnum is the world’s leading digital asset bank and the first regulated Swiss bank with a full digital asset banking suite to have issued a settlement token. Others, such as Geneva-based cryptocurrency company Libra or a consortium of thirteen of the world’s leading banks, including Crédit Suisse, UBS and Santander, have also pushed ahead with rival digital currency solutions for 2020.

As digital finance rapidly takes over, digital stablecoins are all the rage in current financial markets and essential in preparing for a mainly digital future.

“We have focused on the development of the Sygnum DCHF as it is essential for bringing the digital asset economy to life. It creates significant operational efficiencies, and at the same time fosters the development of new business models,” commented Mathias Imbach, Sygnum Co-Founder and CEO Singapore.