Sygnum Bank Introduces DCHF Digital Swiss Franc for Securities Settlement

Sygnum Bank introduced a digital version of the Swiss franc (DCHF) for fast and economical settlements withsecurities.

As the bank management explained, DCHF tokens will besecured by the corresponding amount in Swiss francs, which Sygnum holds in the Swiss National Bank. In addition, tokens will be used to pay dividends on digital shares based on the blockchain, which will be automatically created using smart contracts. Sygnum co-founder Mathias Imbach believes that reliable stablecoins play a key role in the development of digital assets, and DCHF tokens will increase the efficiency of financial institutions and at the same time will facilitate the introduction of new business models.

Sygnum is one of the companies working onthe creation of SDX, a blockchain-based trading platform that the SIX Group stock exchange plans to launch by the end of this year. This platform is being developed to accelerate and simplify trading in stocks, bonds and other financial assets, while reducing costs. Sygnum Bank assumes that its token will be used not only on the SDX platform, but will also enter other markets.

In August, the Swiss Supervisory Authority forfinancial market (FINMA) issued a license to Sygnum for banking and securities trading, which gives the bank the right to provide services to institutional clients. Earlier, the Swiss stock exchange SIX has already approached the Central Bank of the country on the issue of stablecoin secured by the Swiss franc.

However, the president of the Swiss National BankThomas Jordan expressed concerns about stable cryptocurrencies, comparing them with speculative investment instruments that could violate the country's monetary policy.

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