What is CryptoFranc (XCHF)?

Quick Facts

• Issuer: Swiss Crypto Tokens AG, a subsidiary of Bitcoin Suisse AG
• Blockchain: Ethereum (ERC-20 standard)
• Peg: 1 XCHF = 1 Swiss Franc (CHF)
• Backing: Physical CHF banknotes stored in a secure bunker
• Auditor: Grant Thornton Bank Audit Ltd (monthly audits)
• Legal structure: Swiss Franc-denominated bond under Swiss law
• Regulatory classification: Payment token under FINMA guidelines
• Smart contract audit: Reviewed by Chain Security AG

Introduction

CryptoFranc (XCHF) was a fully collateralized Swiss Franc stablecoin built on the Ethereum blockchain. Issued by Swiss Crypto Tokens AG, a subsidiary of Bitcoin Suisse AG, it brought the stability of the Swiss Franc into the world of decentralized finance and blockchain-based payments.

Its goal was straightforward: give the Swiss blockchain ecosystem a reliable, CHF-denominated money market instrument that developers, businesses, and investors could rely on.

History & Background

Swiss Crypto Tokens AG was established as a dedicated entity within the Bitcoin Suisse Group, one of Switzerland's oldest regulated crypto-financial services companies, founded in 2013. XCHF was among the first stablecoins pegged to the Swiss Franc, emerging from the thriving Crypto Valley in Zug, Switzerland.

In 2024, Bitcoin Suisse AG announced the discontinuation of XCHF, progressively winding down issuance and redemption. Remaining token holders were directed to redeem their holdings for CHF through a structured exit process.

How CryptoFranc Works

XCHF operated as a bond-backed stablecoin. Each token legally represented a claim of one Swiss Franc against Swiss Crypto Tokens AG, structured as a fixed-term bond under Article 1156 of the Swiss Code of Obligations.

The full value of tokens in circulation was held in physical CHF banknotes, secured in a bunker and subjected to monthly independent audits. This reserve model ensured that every XCHF could be redeemed for its face value in CHF at any time.

The smart contract, deployed on Ethereum and linked to the cryptofranc.eth ENS domain, was independently reviewed and audited by Chain Security AG before going live.

Tokenomics

XCHF followed a collateral-first issuance model: new tokens were only minted when equivalent CHF reserves were deposited. Buyers accessing tokens directly from Swiss Crypto Tokens AG were required to complete KYC and AML verification before issuance. Secondary market access was available through select cryptocurrency exchanges, offering more flexible entry points.

Ecosystem & Use Cases

XCHF was designed to serve the broader Swiss blockchain economy. Notable use cases included:

• Real estate tokenization — platforms like Blockimmo used XCHF as a stable settlement currency.
• On-chain share issuance — companies offering equity directly on the blockchain relied on XCHF for stable pricing.
• DeFi liquidity — XCHF was available on decentralized exchanges such as Uniswap, allowing ETH/XCHF trading pairs.
• Volatility hedging — investors could remain within the crypto ecosystem while avoiding price swings by holding XCHF.

Team, Governance & Community

XCHF was governed by Swiss Crypto Tokens AG, operating under the oversight of Bitcoin Suisse AG. The project followed a centralized issuance model, with the company maintaining full control over minting, redemptions, and reserve management. Compliance with FINMA (Swiss Financial Market Supervisory Authority) guidelines ensured a regulated operational framework throughout its active lifecycle.

Advantages

• Full collateralization — every token was backed 1:1 by physical CHF banknotes.
• Monthly audits — independent verification by Grant Thornton provided transparency.
• Regulatory compliance — operated within FINMA's payment token classification framework.
• Smart contract security — audited by Chain Security AG before deployment.
• Swiss Franc stability — offered exposure to one of the world's most stable fiat currencies.

Risks & Challenges

• Centralization risk — full dependence on Swiss Crypto Tokens AG for issuance and redemptions.
• Counterparty risk — token value relied on the continued solvency of the issuing entity.
• Limited ecosystem reach — use cases were concentrated within the Swiss blockchain space.
• Discontinued operations — Bitcoin Suisse AG wound down XCHF in 2024, ending active issuance.

Long-Term Vision

While XCHF itself has been discontinued, it served as a pioneering example of a regulated, fiat-backed stablecoin within a strict legal framework. Bitcoin Suisse AG has acknowledged continued interest in stablecoin innovation and expressed intent to evaluate future alternatives. The XCHF project demonstrated that a compliant, fully audited CHF stablecoin is technically and legally achievable, setting a blueprint for future Swiss Franc digital currency initiatives.