AllUnity, a joint venture backed by asset management arm DWS of Deutsche Bank, has introduced CHFAU, a Swiss franc denominated stablecoin designed for institutional use. The token is pegged 1:1 to the Swiss franc and initially issued on the Ethereum blockchain as an ERC-20 asset, with plans to expand to additional networks later this year.
The launch follows AllUnity’s approval as an E-Money Institution by Germany’s federal financial regulator, BaFin. This allows CHFAU to operate in alignment with the European Union’s Markets in Crypto-Assets (MiCA) regulation, positioning it as a fully compliant digital settlement instrument within the bloc.
Institutional Focus and Cross-Border Settlement Use Cases
CHFAU will be accessible exclusively to institutional and professional clients through the AllUnity Mint Platform. The company states that the stablecoin is intended to facilitate regulated cross-border payments, digital asset trading, and corporate treasury management, offering real-time settlement in Swiss francs within a supervised framework.
Growing Competition in Swiss Franc Stablecoins
While AllUnity describes CHFAU as the first MiCA compliant CHF-pegged stablecoin, other projects already exist. Decentralized issuer Frankencoin (ZCHF) and VNX Swiss Franc (VCHF) collectively contribute to an estimated $38.6 million CHF stablecoin market, according to data from DefiLlama.
AllUnity previously launched EURAU, a euro-pegged token that has reached a market capitalization of $1.2 million, reflecting gradual institutional adoption within Europe’s regulated digital asset space.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.