AllUnity has introduced a new regulated stablecoin pegged to the Swiss franc, expanding its multicurrency digital asset platform as demand grows for compliant non dollar stablecoins. The token, branded CHFAU, is fully backed one to one by Swiss franc reserves and issued under the supervision of Germany’s financial regulator BaFin as an electronic money product.
The launch positions AllUnity among the first European institutions to offer a regulated digital representation of the Swiss franc aimed at institutional use cases. Built initially on the Ethereum blockchain as an ERC 20 token, CHFAU is designed to support payments, settlements and treasury operations. The company indicated that additional blockchain integrations may follow later this year.
AllUnity is a joint venture backed by DWS, Galaxy and Flow Traders, combining traditional asset management expertise with digital asset infrastructure. The new Swiss franc token follows the firm’s earlier euro pegged stablecoin, reflecting a broader strategy to provide regulated fiat linked digital liquidity across multiple currencies.
The debut comes at a time when investor interest in the Swiss franc is increasing. Major global banks have highlighted the currency’s appeal as a safe haven asset amid ongoing macroeconomic uncertainty. Analysts at several institutions have pointed to fiscal and geopolitical pressures in major economies as factors strengthening the franc’s relative stability profile.
A safe haven currency is typically characterized by strong economic fundamentals, political stability and consistent demand during periods of financial stress. The Swiss franc has increasingly been compared to gold due to its resilience in volatile market conditions. Some investment banks have projected further appreciation of the franc against the US dollar, citing Switzerland’s fiscal discipline and external balance strength.
Against this backdrop, the introduction of a regulated digital Swiss franc offers institutions a new tool for liquidity management and cross border transactions. Stablecoins backed by non dollar currencies remain a small portion of the overall market, which is dominated by US dollar linked tokens. However, demand for diversification is rising, particularly among European and Asian institutions seeking alternatives for settlement and treasury allocation.
The global stablecoin market has grown rapidly over the past several years, surpassing hundreds of billions of dollars in total market value. While dollar pegged tokens remain dominant, regulatory developments in Europe and other regions are encouraging the issuance of compliant euro and other fiat linked digital currencies.
By securing BaFin approval and maintaining full reserve backing, AllUnity aims to provide transparency and regulatory assurance to institutional users. The move reflects a broader trend of traditional financial institutions entering the stablecoin sector as they adapt to blockchain based settlement systems and round the clock digital markets.
