The Swiss Banking Association (SBA) is coordinating a tokenized deposit project with a dozen banks with the aim of introducing a tokenized Swiss franc. The banks are BCV, Credit Suisse, Entris Banking, Hypothekarbank Lenzburg, InCore Bank, Julius Baer, ​​PostFinance, Sygnum, UBS, Vontobel, VZ Depotbank and Zürcher Kantonalbank.

Three months ago, the banking association published an article exploring the issue. He outlined several potential paths, including standardized tokens to allow for interoperability or a joint token with segregated reserves. While the association favored the latter route, banks have so far not yet decided which path to take.

The SBA emphasized that the solution will be compatible and scalable. Therefore, it is engaging with regulators and with other blockchain initiatives in Switzerland.

The project is “of the utmost importance for the future competitiveness of the Swiss financial sector,” the association said.

There are a growing number of deposit token initiatives around the world. Germany has started work on one. Next week, the New York Federal Reserve plans to share the results of the proof of concept with the Regulated Liability Network, which involves eight banks, including Citi, BNY Mellon, Wells Fargo and HSBC.