CHFAU targets institutional settlement as Europe’s regulated stablecoin race intensifies
AllUnity, the Deutsche Bank-backed stablecoin venture, has launched a Swiss franc–denominated digital asset as part of its push to build a regulated European payments infrastructure.
The new token, CHFAU, is pegged 1:1 to the Swiss franc and initially issued on Ethereum as an ERC-20 token. The company said additional blockchain integrations are planned later this year. Access will be limited to institutional and professional investors through the firm’s proprietary AllUnity Mint Platform.
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The launch follows AllUnity’s earlier rollout of EURAU, its euro-pegged stablecoin, and comes after the company secured an E-Money Institution license from Germany’s financial regulator, BaFin, in July 2025. That approval enables AllUnity to operate under the European Union’s Markets in Crypto-Assets Regulation (MiCA), which has begun reshaping the region’s digital asset landscape.
A regulated digital franc for institutional flows
AllUnity positions CHFAU primarily as a settlement instrument for institutional use cases, including cross-border payments, digital asset trading and treasury management.
CEO Alexander Höptner described the launch as a key step toward building a compliant European digital payments ecosystem. By operating within a MiCA-aligned framework, the company aims to provide a regulated alternative to offshore stablecoins that dominate global volumes.
While CHFAU is technically live, broader availability will depend on integrations with exchanges and trading venues. The company said listings will be announced as partnerships are finalized.
EURAU gains modest traction amid competitive euro stablecoin market
AllUnity was founded in early 2024 as a joint venture between DWS, the asset management arm of Deutsche Bank, market maker Flow Traders and crypto investment firm Galaxy Digital.
Its euro stablecoin, EURAU, launched in July 2025 and has since grown to a market capitalization of about $1.2 million. That places it mid-tier among more than 20 euro-pegged stablecoins currently tracked, in a segment with roughly $895 million in total value.
Circle’s EURC remains the dominant euro stablecoin, with nearly half a billion dollars in circulation. Still, regulated issuers such as AllUnity are betting that MiCA’s clarity will gradually shift institutional preference toward fully licensed providers.
Swiss franc stablecoins face limited adoption history
Although AllUnity describes CHFAU as the first MiCA-compliant CHF stablecoin, it enters a niche but established field.
At least three other Swiss franc–denominated tokens are currently active, including Frankencoin, VNX Swiss Franc and Hedera Swiss Franc. Together, they account for less than $40 million in combined market capitalization,
according to DefiLlama data.
Previous attempts have struggled to scale. CryptoFranc, issued by Bitcoin Suisse around 2018, was discontinued after failing to gain meaningful adoption.
For AllUnity, the differentiator lies not in novelty but in regulatory alignment. With European policymakers prioritizing compliance and transparency, institutional-grade stablecoins may increasingly compete on licensing and governance rather than pure market size.
Swiss franc-pegged stablecoins. Source: Defillama