Intending to improve transaction efficiency and ease between other cryptocurrencies and Fiat currency, Sygnum crypto bank has launched a digital Swiss franc (DCHF).
The Sygnum crypto bank launched DCHF is said to be created on blockchain tech and valued at the same amount of national Swiss franc worth. Being a stablecoin, it removes any need for a middleman as it can be sent in real-time and settled instantly. DCHF primarily is going to shield clients from the counterparty, reduce the difficulty, cost, time.
Central component of the digital asset ecosystem
The crypto bank also revealed that for firms and government institutions, the stablecoin is pivotal in playing a central component of the digital asset ecosystem enabling complete integration of assets token into banking operation.
According to Markus Hartmann, head of tokenization at Sygnum crypto bank, he said that the stablecoin is a fundamental part of the banks’ tokenization offering aiding settlement of transactions and execution of smart contracts payment structures like dividends payout and other corporate action.
Sygnum crypto bank in their report mentioned that they would own an amount equal to CHF as collateral in the country’s apex bank, Swiss National Bank (SNB) for coins minted in customers’ accounts. The bank supports deposits in different fiat currencies like EUR, CHF, USD, etc. the bank will use a convenient e-banking portal to transfer balances to the new coin. Users will be enabled to trade and possess digital assets, too, like BTC, ETH, etc. with the stablecoin also.
Sygnum crypto bank: first operating license
Financial Market Supervisory Authority (FINMA), Switzerland’s financial regulator, approved Sygnum crypto bank last year, allowing Syngum to provide crypto services to firms and individuals across Switzerland.
Then, they became part of banks to receive the first set of licenses for pure-play blockchain service providers and given with new guidelines.
Sygnum crypto bank was warned by the regulators under supervision to conduct crypto-related transactions with verified clients alone. This is because of the natural anonymity of blockchain technology presents increased risks.