Swiss Digital Bank, Sygnum Launches DCHF Settlement Token Pe...
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Swiss Digital Bank, Sygnum Launches DCHF Settlement Token Pegged to Swiss Franc

Digital asset bank, Sygnum has announced the launch of a digital CHF token (DCHF). Sygnum’s DCHF is a settlement token pegged to the Swiss Franc to facilitate crypto trading between fiat currencies and cryptocurrencies. 

For every DCHF token minted, the bank claims it will hold its equivalent amount of CHF as collateral in the Swiss National Bank. Sygnum is a regulated Swiss bank and its products and services are regularly audited. 

The newly launched token is going to act as a bridge between other digital currencies and fiat currencies, for more efficient transactions. DCHF is a blockchain-based token and can be transferred in real time, resulting in faster settlement of transactions and eliminating middlemen. 

According to the bank, using DCHF for transactions will reduce the complexity, cost, time and also reduce third party risks. The settlement token also serves as a central component of the digital asset ecosystem for institutional investors, which will enable full integration of asset tokens into bank infrastructure. 

Sygnum’s tokenization solution also provides companies the ability to raise new capital through the production of asset tokens based on existing financial assets. The solution also aims to improve the management of securities issuance and investments, such as the automated executions of corporate actions. 

Users can deposit fiat currencies such as CHF, EUR, SGD, and USD into their Sygnum account. They can further exchange these balances into Sygnum’s DCHF tokens using a convenient e-bank portal. The users can as well use their deposits to purchase, trade and hold a wide range of cryptocurrencies such as Bitcoin and Ethereum in one account. 

According to Mathias Imbach, Sygnum co-founder and CEO of Singapore branch, the bank is focused on the development of the DCHF token. He said DCHF is crucial for bringing the digital asset economy to life. According to Imbach, DCHF creates notable operational efficiencies and also enhances the development of new business models. 

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Born, raised and schooled in Sweden with a degree in law, Glenn is a long time crypto enthusiast. He quickly acknowledged the potential of the blockchain technology, and the benefits of decentralization. Glenn believes in a future where blockchain technology and decentralization will govern and enable people to have a transparent security and financial system.