On Tuesday the Swiss Banking Association (SBA) published a white paper on deposit tokens. It’s particularly interested in Swiss Franc (CHF) deposit tokens to settle transactions for tokenized assets. Apart from digital assets, it focuses on ‘payments of the future’, including retail wallet-based payments, micropayments and corporate payments.
Interoperability is seen as an essential principle of deposit tokens. The SBA believes this is best achieved by using public blockchain.
As context, in Switzerland there are already two institutional CHF stablecoins from the SIX Digital Exchange and Sygnum, but both are only usable with their own ecosystems. The SBA’s vision is something bigger and more interoperable. While both the SDX and Sygnum tokens are fully backed by reserves, deposit tokens could potentially be based on fractional reserves because participants are regulated banks.
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