Switzerland stablecoin licensing could bolster franc and tokenised markets

Regulators in Bern have opened a consultation to shape oversight of a switzerland stablecoin intended for payments, requiring issuers to hold fully backed, segregated reserves and clear redemption rights for holders. FINMA published the Oct. 22 proposal proposing a new licence for payment institutions.

The Oct. 22 draft would create a new licence for payment instrument institutions issuing value‑stable, blockchain‑based tokens, mandating full backing with high‑quality liquid assets and segregated reserves. Issuers must notify FINMA at least 60 days before launch, which regulators say allows time for review and operational readiness. That requirement is intended to send a STRONG supervisory signal.

What does the switzerland stablecoin finma guidance propose?

At its core, the proposal requires tokens to remain value‑stable and be fully backed by high‑quality liquid assets, with segregated custodial reserves and clear redemption mechanics. Holders would have a legal right to redeem tokens at face value within a short period, a protection aimed at limiting settlement and credit risk. The text explicitly contemplates assets denominated in Swiss franc or equivalent instruments. The framework is presented as a STRONG attempt to set predictable issuance requirements and reserve rules for market participants.

Policy analysts say clearer reserve rules could strengthen confidence in tokenised markets and improve liquidity for on‑chain debt and asset instruments. As crypto.news reports, “To have that market, you need tokenised money — cash on chain,” said Dea Markova, underlining how stablecoins might enable tokenised asset growth.

How would the switzerland stablecoin licensing guide affect issuers and markets?

Issuers and banks will reassess custody, liquidity management and capital needs in light of tightened reserve rules and rapid redemption obligations. The requirement for segregated, fully backed reserves could raise operational costs but should reduce counterparty risk and boost trust in payment‑instrument tokens. The consultation remains open until February 2026, giving market participants a defined window to comment.

Switzerland will treat foreign‑issued stablecoins traded domestically as crypto assets rather than payment instruments, so offshore issuers are not required to hold duplicate Swiss reserves if they do not issue tokens in Switzerland. Licensed banks and token custodians that already use stablecoins for settlement and trading will weigh compliance costs against potential market access advantages. The global context is shaping responses too: the GENIUS Act in the United States was signed in July 2025, accelerating regulatory work elsewhere.

Observers, including industry founders and policy directors, highlight the potential to “support the strength of the Swiss franc, its stability and sovereignty,” as one commentator noted, while also warning that careful implementation is essential. The consultation aims to balance consumer protection with operational feasibility as Switzerland seeks to anchor tokenised markets to robust monetary and legal safeguards.