Swiss stablecoin project enters testing phase, adds SIX and TWINT as partners

A Swiss industry initiative developing a Swiss franc-denominated stablecoin has entered a live testing phase and added financial market operator SIX and payment app TWINT as new partners, Swiss bank UBS said on Tuesday.The tests are based on CHFD, a Swiss franc stablecoin that has been technically live in the sandbox since late June and is designed to maintain a 1:1 peg to the Swiss franc.The scheme aims to generate insights for the further development of the Swiss digital money ecosystem and to strengthen the competitiveness of Switzerland's financial centre, the bank said in a statement.UBS, PostFinance, Sygnum, Raiffeisen, ZKB and BCV initially joined forces in April to test potential uses for a franc-pegged stablecoin in Switzerland, as banks grapple with the growing stablecoin industry and wider growth of cryptocurrencies.A type of cryptocurrency designed to maintain a constant value and backed by traditional currencies, stablecoins are seen by some lenders as potential competitors, pressuring them to find uses for blockchain technology within their own businesses.