Switzerland’s Stock Exchange SIX to Develop Swiss Franc-backed Stablecoin

Switzerland’s stock exchange SIX is reportedly developing a stablecoin pegged to the Swiss franc, according to an email shared with CoinDesk.

Although not much information has been provided on the development or the nature of the stablecoin, however, citing a spokesperson for SIX who confirmed the development, the outlet quoted: “Yes, we are currently working on a CHF Stable Coin – so Swiss franc.”

According to CoinDesk, the stablecoin backed by the Swiss franc on its digital exchange SDX may enable it to swap “tokenized securities and other assets on the blockchain”.

Switzerland has always been a crypto-friendly jurisdiction, and the stock exchange recently launched a unit for digital currency trading. Should the stablecoin project be successful, it would be the first mainstream regulated stock exchange to expand the use case of cryptocurrency into mainstream unlike the analogous digital currency developed by the JPMorgan bank – the JPM Coin.

Stablecoins are increasingly becoming a popular element in the digital asset industry as they present unique opportunities to tokenize fiat currencies or stable commodities to hedge other assets that are vulnerable to market volatility.

According to reports, there exists a number of stablecoins which have been doing well in the recent months as users of this asset class find it convenient to leverage the price stability of the asset as it is paired to either a form of conventional fiat currency or a cryptocurrency as with the case of the DAI.

Binance Research recently published a report showing how viable stablecoins are and invaluable to the eventual stability of the cryptocurrency industry.

 

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