Swiss banks sign memorandum of understanding to explore the feasibility of a jointly issued Swiss franc deposit token
Three Swiss banks signed today a memorandum of understanding under the helm of the Swiss Bankers Association with the goal to conduct a Deposit Token proof of concept during the course of 2025.
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The Swiss Bankers Association (SBA) and its member institutions have reached an important milestone in their initiative to further modernize Switzerland's financial system using distributed ledger technology. The digital currencies project is a central step towards enhancing the services of the Swiss financial center and maintaining its competitive edge in the digital economy.
The SBA’s recent efforts within the digital currencies project have underscored the importance of collaboration among financial institutes and the development of technical and legal frameworks. These elements are crucial for paving the way for a Swiss franc deposit token as part of the payment infrastructure, which aims to promote innovative and secure financial services in the digital economy. The latest advancement in this collaborative approach is the launch of a proof of concept (PoC). In this PoC, the SBA acts as a platform to ensure that the non-participating market actors are informed throughout the lifecycle of the project and involved in relevant decisions.
To assess the feasibility and potential benefits of a deposit token in Switzerland, the SBA member institutes PostFinance, Sygnum, and UBS have signed today a Memorandum of Understanding (MoU). This MoU demonstrates their commitment to designing and implementing an initial Deposit Token PoC, focusing on two main use cases in the areas of peer-to-peer payments and digital assets settlement.
The MoU outlines the shared objectives of conducting the PoC during the course of 2025 and addresses the resulting inter-institutional technical and legal challenges. The joint work aims to provide a non-binding evaluation for all interested financial market participants on how such a deposit token design may be implemented, potentially leading to a nationwide rollout of the Swiss franc deposit token. However, a successful PoC will not prejudge a decision on a rollout.