Sygnum Bank rolls out Swiss Franc stablecoin

A Switzerland-based crypto-friendly bank, Sygnum AG, is launching a digital version of the Swiss Franc stablecoin known as DCHF token. The main goal is to make it easier for people to invest in digital assets.

The token will be fully supported by the equivalent amount
of Swiss Franc and it’s designed to help people easily trade in securities.
Reports on the development stated that Sygnum will hold the digital currency at
the Swiss National Bank (SNB).

According to a close source, Sygnum will be rolling out
the stablecoin which is meant to ease trading of financial instruments like
shares, bonds, and others.

The Swiss Stock Exchange has been a staunch supporter of
digital currency in Switzerland. The exchange has been trying to develop SDX,
an exchange for the trading of digital assets. And Sygnum is among the group of
companies in the SDX trading platform.

The trading platform is going live this year

Based on the arrangement, the SDX digital assets platform
will be going live later in the year. When it goes live, the platform will offer
more cost-effective and faster means of trading of bonds, shares, and other
types of securities.

With this action, Sygnum is now the first regulated Swiss
bank to roll out a digital stablecoin. The firm will be storing the fiat
equivalent of every minted DCHF in the Swiss National Bank. It means that investors’
funds will be secured irrespective of other underlying factors.

DCHF will be promoting Efficiency 

According to Sygnum Bank, the DCHF will serve a very important purpose in the digital financial sector. It can be used as a payment medium for investment dividends of digital company shares, which can be generated via smart contracts.

In a statement on the development and establishment
of the stablecoin, Co-founder of Sygnum, Mathias Imbach, pointed out that that
the digital Swiss franc will improve efficiency and enormously improve the
overall operations of the company.

“Our DCHF digital asset creates considerable operational
efficiencies and at the same time promotes the development of new business
models,” he said.

SEBA AG and Sygnum were awarded an operational license in
August last year by Swiss market regulatory authority, FINMA. The license would
enable both firms to offer financial services to both institutional and
professional clients.

As at then, Sygnum
said the award of the license will change the way investors and other
stakeholders approach the digital assets market. The firm reiterated that the
incorporation of digital assets into mainstream banking will inject the
required DLT-driven agility.