AllUnity launches regulated CHF stablecoin for institutional investors

AllUnity launches regulated CHF stablecoin for institutional investors
AllUnity launches CHFAU Swiss franc stablecoin under MiCA

​AllUnity, a joint venture of DWS (Deutsche Bank), Galaxy Digital and Flow Traders, has launched CHFAU, a stablecoin pegged 1:1 to the Swiss franc. The new token targets institutional and professional investors and complies with the European Union’s Markets in Crypto-Assets (MiCA) regulation.

As reported by Cointelegraph, CHFAU has been issued on the Ethereum blockchain as an ERC-20 token, with plans to expand to additional networks later this year. The launch follows AllUnity’s receipt of an electronic money institution (EMI) license from Germany’s financial regulator BaFin in July 2025. “The launch of CHFAU marks an important step toward building a regulated digital payments ecosystem in Europe,” said AllUnity CEO Alexander Höptner. The token will be distributed through the AllUnity Mint platform. The company said exchange integrations are being finalized, with listings to be announced as platforms go live.

A regulated digital Swiss franc for institutional settlements

AllUnity says CHFAU is designed for cross-border payments, digital asset market settlements and liquidity management. The token enables real-time value transfers within a licensed regulatory framework. The company positions the asset as a tool for treasury operations of banks and asset managers.

Previously, AllUnity launched EURAU, a euro-pegged stablecoin. Since its debut, its market capitalization has reached $1.2 million, ranking 16th among 22 euro-denominated stablecoins, according to CoinGecko. The total euro stablecoin market stands at approximately $895 million, led by Circle’s EURC with a market capitalization of about $459 million.

Competition in the CHF stablecoin market

CHFAU enters a market where other digital Swiss franc tokens already operate. According to DefiLlama, the combined market capitalization of CHF stablecoins, including Frankencoin (ZCHF), VNX Swiss Franc (VCHF) and Hedera Swiss Franc (HCHF), is about $38.6 million. The largest among them is Frankencoin, a decentralized stablecoin launched in 2023.

CryptoFranc (XCHF), issued by crypto financial services provider Bitcoin Suisse, previously operated in the market but was discontinued due to limited adoption. AllUnity claims CHFAU is the first Swiss franc stablecoin fully compliant with MiCA, which could serve as a key competitive advantage within the European jurisdiction.

MiCA and the institutional growth factor

The implementation of MiCA has reshaped the European stablecoin market. Regulated issuers now have access to banking infrastructure and institutional clients restricted from working with unregulated assets. AllUnity’s BaFin license and MiCA compliance provide CHFAU with the legal framework required for integration into treasury operations of financial institutions.

With the CHF stablecoin segment valued at roughly $40 million, even a partial inflow of institutional capital could significantly alter market dynamics. Unlike decentralized alternatives, CHFAU offers transparent reserve backing and regulatory oversight. The combination of regulation, trust and institutional demand creates conditions for potential market share growth, particularly as the European stablecoin sector consolidates under MiCA.

Read also: Revolut and three other firms to test stablecoins under UK regulatory program

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